Siemens shares jump 10% post September-quarter earnings

Shares of Siemens Ltd jumped nearly 10 per cent in early trade on Thursday after the company reported decent September quarter earnings and said it is optimistic about its future growth amid easing of lockdown restrictions.

The stock gained 9.94 per cent to Rs 1,497.95 on the BSE.

At the NSE, it zoomed 9.85 per cent to Rs 1,498.70.

Siemens on Wednesday reported a marginal 4.7 per cent fall in net income to Rs 333 crore for the September quarter, due to the coronavirus-induced lockdown that led to underutilisation and a resultant loss of Rs 285 crore.

The company follows an October-September financial year and reported a dip in revenue and profit for the full year to September.

Income slipped to Rs 10,179 crore from Rs 13,394 crore, pulling down net income to Rs 765 crore from Rs 1,068.

Revenue fell 9.2 per cent to Rs 3,422 crore for the quarter, while new orders grew 8.7 per cent to Rs 3,220 crore.

However, the management led by managing director and chief executive Sunil Mathur guided towards better days as more areas of the economy come out of the lockdown restrictions and government orders, a key component of its business, begin to flow into the system. Also, there is a steady increase in orders from the private sector.

It has a strong order backlog of over one year's revenue, partially on account of the lockdown, which resulted in lower revenue. The profit was impacted due to expenses incurred during the lockdown period, amounting to Rs 285 crore.

However, its profit from operations improved from 10 per cent to 11.4 per cent of revenue for the quarter, indicating better margins.