MOSL: SIEMENS (Neutral)-4QFY17 RESULT-Better-than-expected margin leads to in-line operating performance
Siemens 4QFY17 RESULTS: Better-than-expected margin leads to in-line operating performance
(SIEM IN, Mkt Cap USD6.6b, CMP INR1215, TP INR1313, 7% Upside, Neutral)
- 4QFY17 operating performance in-line: On a reported basis, revenue increased 1.7% YoY to INR31.4b (est. of INR39.4b). Muted revenue growth can be attributed to a weak performance in the power & gas (-14% YoY), mobility (-25% YoY) and building & technologies (-7.6% YoY) segments. EBIDTA improved 15% YoY to INR3.2b, with the margin at 10.1% (+120bp YoY; est. of 8.3%). Adjusted net profit from operations declined 8.6% YoY to INR2.0b, below our estimate of INR2.7b.
- Gross margin expanded 20bp YoY to 32.2% in 4QFY17. EBITDA margin of 10.1% came in ahead of our estimate of 8.3%. EBIT margin expanded 100bp YoY to 8.4% on account of margin improvement across segments, barring digital factory. Power & gas segment improved margin by 800bp YoY, led by a better revenue mix and one-off settlement from a customer.
- Order inflow up 10% YoY; book-to-bill at 1.1x: Order intake for the quarter stood at INR27.0b (+10% YoY; INR24.5b in 4QFY16), driven by finalization of base orders. The company’s book-to-bill stood at 1.1x, with an order book position of INR122.6b.
Siemens is an electronics products manufacturing group based in India. Co. is engaged in designing, manufacturing and marketing electrical and electronics products and equipments mainly for the power industry and the information and communication industry in India. Co. is also engaged in providing consultation services, providing back office support services and real estate management. Co. operates nine business segments with Healthcare as a separately managed business. Co.'s business segments include: Power and Gas; Wind Power and Renewables; Power Generation Services; Energy Management; Building Technologies; Mobility; Digital Factory; Process Industries and Drives; and Financial Services.
Motilal Oswal Financial Services Ltd. is a reputed name in Financial Services and Online Trading with group companies providing services such as Private Wealth Management, Retail Broking and Distribution, Institutional Broking, Asset Management, Investment Banking, Private Equity, Commodity Broking, Currency Broking, Principal Strategies & Home Finance.
Motilal Oswal Securities is a group company of Motilal Oswal Financial Service Limited which started as a stock trading company and has blossomed into well diversified firm offering a range of financial products and services. Motilal Oswal has built a reputation as the source for best stock trading company and this has taken a wealth of experience, knowledge and expertise, constantly working in tandem, over the years.
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