Siemens' Q3(Oct-Sep) net drops; stock soars on special dividend

Siemens, the manufacturer of electric motors, generators and transformers has posted its Q3FY16 results on Aug 5 where it has posted de-growth in both topline and bottomline numbers. The company follows a October to  September cycle as its annual year.

The stock of Siemens however, has gained almost 1 per cent after the company declared special dividend of Rs 27.50 per share of Rs 21 each. The company has maintained an uptrend after it has taken a major support at 970 levels.

The standalone revenues of Siemens have dropped by 6 per cent to Rs 2563.13 crores for Q3FY16 as against Rs 2725.43 crores in the previous quarter. The Energy Management segment that is one of the major revenue generators has seen a downturn in its sales revenues by 13.5 per cent to Rs 740.41 crores.

Company’s June quarter EBITDA has come in at Rs 233.84 crores as against Rs 306.15 crores in the previous quarter. Segment wise EBIT has dropped with 65 and 39 per cent drop in Power & Gas; and Energy Management, respectively. Despite of a drop in tax expenses by 29 per cent company has failed to post positive growth in the net profits. Net profits have declined by 26.7 per cent to Rs 130.04 crores.

Considering year on year numbers, Siemens has seen a growth in revenues by 10.4 per cent from corresponding quarter of the previous year. Net profits however, dropped 22.7 per cent with nearly 50 per cent drop in other income. 

According to Siemens the company has posted above expected results driven by large energy projects. The company has lifted its annual earnings' forecast for the year ended September 2016 amid growth in orders and sales that has outperformed those of its main rivals.