Suryaa Business Desk: Siemens Limited (Siemens India) has released its second-quarter financial results, drawing a mixed response from the market. While the company recorded significant progress in new order intake supported by infrastructure development and private sector capital expenditure, operating margins weakened due to rising raw material costs and foreign exchange fluctuations.
New order volumes for the company increased by 37.8 percent year-on-year to ₹6,228 crore. Consequently, the total order backlog grew by approximately 12 percent to reach ₹47,034 crore. Revenue from operations also recorded a growth of approximately 17 percent, reaching ₹5,734 crore. However, due to the rise in raw material prices and increased operating expenses, the company's operating margins declined to 9.5 percent from 11.4 percent in the previous year. Net profit rose marginally by 4.78 percent to ₹504 crore.
Following these results, international and domestic brokerage firms have released their outlooks on the stock. CLSA maintained a 'neutral' rating while increasing the target price from ₹3,757 to ₹3,944. The firm noted that while revenue and EBITDA performance exceeded consensus estimates, current valuations are fully reflected in the stock price. Other brokerages remain divided; some express a bullish outlook citing a strong order pipeline and the expansion of energy and mobility businesses, while others advise investors to remain cautious due to margin pressure and high valuations.