Analyst Meet / AGM - Analyst Meet
The company is ready for PM's vision of Make in India model
The company held its Analyst Meet on 30th April 2015 and was addressed by Mr. Sunil Mathur MD and CEO
Key Highlights
As per the management, the New Government's focus on Infrastructure, opportunities in safety, signaling and rolling stocks in Railways, UMPP projects in Power, higher allocation to T&D sector, Electrification of 20000 villages including off grid Solar Power, investments in upstream oil companies etc, auger well for Siemens India's business.
The company is already ready for the PM's vision of Make in India model. Most of the factories located in India are fully enabled with necessary technology and infrastructure to implement the entire project and its execution in India.
The company is ready to execute Smart City Projects of India and it has all the necessary technology and all smart city solutions in India to execute at its highest level. Management expects bidding to start soon and Siemens India to win atleast couple of orders of Smart City.
The company received orders worth Rs 2670 crore in Mar'15 quarter, almost flat on YoY basis. In H1 Mar'15 basis, the order intake grew by about 2.7% to Rs 4760 crore. Major orders during H1 ended Mar'15 came from Railways and Power sector. Some of the key orders that the company won during H1 ended Mar'15 includes Diesel Locomotive work order of Rs 450 crore, contract for 220KV GIS substation from Bihar Grid worth Rs 317 crore, GIS contract with fixed series compensators with Power Grid.
Order backlog as on H1 ended Mar'15 stood at Rs 10170 crore, down by 16% on YoY basis.
Net sales for H1 ended Mar'15 was lower by about 6%, largely due to realignment of revenue booking of Healthcare segment. On a comparable basis, the net sales have grown by about 14%.
Profitability improved in almost all the segments largely due to better execution of good margin orders, lower raw material prices and some forex gain.
The order book has better margins compared to past orders. Despite increase in competition from China and other local Indian players, the company was able to grab better margin orders. Going forward margins can improve.
Going forward on capital goods sector, the management is cautiously optimistic and expects the capital goods sector to improve in next 8-10 months. On Railways and Power sector, management is optimistic and expects good orders particularly from high end automation orders and Smart city orders.
Company expects healthy order backlog and better execution going forward.
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