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Siemens Ltd was its stellar operating performance. Ebitda nearly doubled to Rs 440 crore on a year-on-year (y-o-y) basis, much ahead of expectations. Ebitda is short for earnings before interest, tax, depreciation, and amortization. This was led by a decline in employee cost and other expenses. Consequently, the Ebitda margin rose 490 basis points (bps) y-o-y to 13.2 per cent in Q4FY21. One basis point is one-hundredth of a percentage point. The company follows the October to September as financial year.
Reacting to the earnings, the stock hit a fresh 52-week high of Rs2,143 on the NSE in Wednesday’s opening trade. According to analysts at Motilal Oswal Financial Services Ltd, the company’s revenue growth suggests gradual recovery as the two-year revenue CAGR came in flat. But the margin surprise offsets the minor revenue miss, they said in a report on 11 May. CAGR is short for compound annual growth rate. That said, the domestic brokerage house warns that adjusted for strong cuts in other expenses, the margin trend seems to be under pressure and needs monitoring over the next one to two quarters.
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Meanwhile, its order inflows stood at Rs 3,300 crore, up 17 per cent y-o-y, buoyed by increased demand in the power transmission, digital grid and distribution systems businesses. The company’s management said it is seeing steady revival from public and private sectors. At the end of the March quarter, its order book stood at Rs12,700 crore.
“We believe, cloud-based open IoT platform Mindsphere is expected to gain momentum under the digitalization theme leading to new orders over the medium term,” analysts at Dolat Capital Market Pvt. Ltd said in their earnings review report.
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