Siemens Limited, a leading multinational engineering and technology company, released its Q3 FY25 financial results on February 12, 2025. The company reported a 10% decline in its Profit After Tax (PAT) to ₹372 crore, compared to ₹412 crore in the same quarter last year.
Additionally, Siemens’ revenue fell by 3.3% year-on-year (YoY) to ₹3,587.2 crore in the October-December quarter of the financial year 2024-25 (Q3 FY25), down from ₹3,709.5 crore in Q3 FY24.
Despite challenges in the private sector capital expenditure (capex) cycle, the company remains optimistic about future growth, especially with the government’s continued infrastructure investments and increased focus on manufacturing.
Siemens Q3 Financial Performance
Key Highlights of Siemens Q3 FY25 Results
🔸 Profit After Tax (PAT): ₹372 crore (-10% YoY)
🔸 Revenue from Operations: ₹3,587.2 crore (-3.3% YoY)
🔸 EBITDA: ₹401 crore (-11.48% YoY)
🔸 EBITDA Margin: 11.2% (vs. 12.2% in Q3 FY24)
🔸 New Orders: ₹4,258 crore (+19.61% YoY)
The decline in revenue and profits was mainly attributed to slower private sector capex spending and a normalization of demand in the digital industries business. However, Siemens’ Smart Infrastructure and Mobility divisions continued to grow profitably.
Revenue and Profitability Analysis
Siemens reported total revenue of ₹3,587.2 crore, a 3.3% decline from the ₹3,709.5 crore recorded in Q3 FY24.
The primary reason behind the dip in revenue was:
✔ Slowdown in private sector investments in capex
✔ Reduced short-cycle demand in digital industries
✔ Normalizing market conditions affecting operational performance
On the profitability side, Siemens’ Profit After Tax (PAT) fell 10% YoY due to weaker revenue generation and operational challenges.
EBITDA and Margins Performance
Siemens’ Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA) stood at ₹401 crore, marking an 11.48% YoY decline from ₹453 crore in Q3 FY24.
Key Margin Metrics:
📉 EBITDA Margin: 11.2% (vs. 12.2% in Q3 FY24)
The fall in EBITDA margin was due to:
🚨 Lower revenue growth in key business segments
🚨 Higher operational costs
🚨 Reduced private sector spending
Despite this decline, Siemens remains focused on strengthening its business segments to improve margin performance in the upcoming quarters.
New Orders Growth Amid Revenue Slowdown
One of the positive highlights from Siemens’ Q3 results was the strong growth in new orders.
📌 New Orders in Q3 FY25: ₹4,258 crore (+19.61% YoY)
📌 New Orders in Q3 FY24: ₹3,560 crore
Siemens’ Smart Infrastructure and Mobility businesses continued to benefit from strong order inflows, driven by government-led infrastructure investments.
This increase in order book value indicates strong future revenue visibility for the company.
CEO’s Statement on Siemens’ Performance
Siemens Managing Director and CEO, Sunil Mathur, commented on the company’s Q3 performance, stating:
“Our Smart Infrastructure and Mobility businesses, which are largely linked to government spending in capex, continued to grow profitably. However, revenue and consequently profit from operations were impacted by a slowdown in short-cycle private sector capex spending and normalization of demand in digital industries.”
His statement highlights:
✅ Strong growth in Siemens’ government-linked businesses
✅ Challenges in private sector spending affecting revenue and profit
✅ Siemens’ resilience amid changing market dynamics
Impact of Union Budget on Siemens’ Business
The recent Union Budget 2025 focused on:
📢 Infrastructure development
📢 Boosting domestic manufacturing
📢 Promoting renewable energy and green technologies
Siemens expects a positive impact on its business due to these government initiatives.
CEO Sunil Mathur added:
“With the announcements in the recent Union Budget, we expect a positive impact on our businesses from the Government’s continued emphasis on building a world-class infrastructure, measures to boost consumption, and the increased focus on manufacturing.”
This reaffirms Compnies’ long-term growth prospects, driven by favorable government policies.
Energy Segment Performance and One-Time Gains
Compnay energy business continued to deliver strong growth, backed by:
✔ Rising demand for transmission products and solutions
✔ Favorable government policies promoting energy infrastructure
The company also reported a one-time positive impact of ₹98 crore on profitability, boosting its bottom line.
This segment remains a key growth driver for Compnay in India, ensuring steady revenue streams despite short-term challenges in other sectors.
Market Reaction and Stock Performance
Compnay stock price reacted negatively to the Q3 results.
📉 Siemens Share Price on NSE: ₹5,160 (-0.86%)
📊 Market Capitalization (as of Feb 12, 2025): ₹1.84 lakh crore
The stock decline was due to lower-than-expected revenue and profit performance. However, analysts remain optimistic about Siemens’ long-term growth potential, driven by:
✔ Strong order inflows
✔ Government capex projects
✔ Strategic focus on energy and digital transformation
Conclusion
Compnay faced short-term challenges in Q3 FY25, with a 10% decline in profit and a 3.3% drop in revenue. However, the company remains well-positioned for future growth, backed by:
✅ Strong new order bookings
✅ Government-led infrastructure investments
✅ Expanding energy business
While private sector capex spending remains weak, Siemens’ Smart Infrastructure, Mobility, and Energy businesses continue to drive long-term growth.
Investors will closely watch how navigates market challenges and capitalizes on opportunities in infrastructure, automation, and green energy.
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