Analyst Meet / AGM - Analyst Meet
Management expects the healthcare segment to continue to be robust for the rest of the year
Siemens held its analyst meet on 28rd April'14 and was addressed by Mr Sunil Mathur MD and CEO
Key highlights
For 2nd quarter ended Mar'14, Siemens reported 9% fall in revenue largely due to delay in execution of energy and infrastructure orders. In 12 months ended Sep'13 period, also the revenue from energy and infrastructure declined by about 23%. As per the management, lack of orders and industry confidence is hurting the sector.
Healthcare segment reported strong 39% increase in revenue which was driven by strong growth in diagnostic and imaging division. Management expects the segment to continue to be robust for the rest of the year as well.
Order inflow was down by about 7% to Rs 2620 crore. As per the management, postponement of ordering due to elections and general lack of confidence is hurting the order pie. However during same period last year, the company received an order of Rs 350 crore of traction motors orders and thus inflated the base on YoY basis. Healthcare order inflow during H1 ending Mar'14 was up by 39% YoY due to orders of diagnostics and imaging from Tier 1 and Tier 2 cities.
Enough orders are not being placed leading to higher competition. As per the management, unless orders inflow and volume of execution increases, improvement in margins looks difficult and challenging.
As per the management, if infrastructure order inflow revives, then there is a possibility of further margin improvement.
Powered by Capital Market - Live News