Siemens scaling new heights on strong performance, govt’s thrust on infra

The cycle is up for engineering firms and Siemens is likely to be one of the leading beneficiaries. Apart from the generic revival in activity which is expected to continue through FY2023-24, the Budget has a strong infrastructure thrust, which works in Siemens favour.

The company reported standalone EBITDA of Rs 550 crore (up 66 per cent year-on-year or YoY) in Q1FY23 (Siemens follows a October-September accounting year). This was driven by 13 per cent YoY revenue growth to Rs 3,600 crore and the EBITDA margin expanded by 480 basis points to 15.1 per cent.

Every segment except mobility saw improved margin. The digital Industries segment saw an amazing 1,500 basis points rise in margins, though this is likely to normalise.