Earnings before interest, taxes, depreciation, and amortization (EBITDA) doubled to Rs 440 crore from Rs 220 crore, aided by lower employee costs and other expenses. The EBITDA margin improved 490 basis points (bps) YoY at 13.2 per cent.
registered new orders from continuing operations of Rs 3,309 crore, registering a 16.9 per cent increase over the same period last year. The company’s order backlog stands at a healthy Rs 12,677 crore. The management said there has been increased demand in power transmission, digital grid and distribution systems businesses. The company’s digital industries segment saw growth in the machine tool and process automation businesses. The March-end quarter demonstrated a steady revival in the economy with both private and public sectors beginning to invest in anticipation of future growth, it said.
Adjusted for strong cuts in other expenses (7.3 per cent of sales v/s 13.8 per cent in 2QFY20), the margin trend seems to be under pressure and needs monitoring over the next 1–2 quarters. Other income declined 33 per cent YoY to Rs 54 crore, despite a healthy cash balance, suggesting the impact of declining interest rates on excess cash on the balance sheet, Motilal Oswal Securities said in result update.
The company is poised to benefit over the long term, led by the niche industrial automation and digitalization businesses. While the pace of recovery is very gradual, re-rating of the stock has been quite steep. The ongoing second Covid wave poses a risk to execution, the brokerage firm said.
At 10:11 am, Siemens
was trading 9 per cent higher at Rs 2,116 on the BSE, as compared to 0.77 per cent decline in the S&P BSE Sensex. The trading volumes on the counter jumped over five-fold with a combined 2.87 million equity shares changing hands on the NSE and BSE, so far.
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