After a decent set coming in from Thermax as well as Honeywell automation, the expectation is that Siemens should also be able to report a good quarter. Industrial conglomerate Siemens will release its Q1 numbers today.
However, having said that in terms of the expectations the Street is working with revenue growth of just around 8 percent.
EBITDA is also expected to jump by 8 percent because margins are expected to remain largely flat. The profit, however, is expected to jump up by around 21 percent on account of the tax benefits.
It is the gas and power business as well as digital industries that would report double-digit growth. On the other hand, the smart infrastructure segment of the company should report anywhere between 3 percent and 5 percent revenue growth is what the street is expecting.
In terms of margins, it is expected to remain flat because last year there was this big one-off on account of the forex gains, which supported the earnings. That is not expected this time around but, in terms of the gross margins, the analysts are expecting some expansion.
The profitability is expected to go up on account of the tax cuts.
The other thing to watch out for will be the order inflow number. For the other peers, the order inflow numbers have been inching higher. For Siemens, that to deliver is also important because the valuations continue to very high for all of these companies. The stock has run up quite a bit also because they had done this recent acquisition of C&S Electric. Any more words coming in on that front will also be important.
SIEMENS India