Any current/future new fundraising through debt or equity?

No specific mention of current or future new fundraising through debt or equity in the provided transcript. The discussion primarily focuses on the divestment of the low voltage motors business and strategic restructuring. Siemens Limited plans to distribute the entire sale consideration (after tax) as a special dividend, not indicating new fundraising. There is emphasis on optimizing the portfolio and growing core high-growth, synergistic businesses rather than seeking external financing. No direct references to plans for raising capital via debt or equity were made during the analyst call on

Any current/future capex/capital investment/strategic investment?

Siemens Limited has made a significant acquisition of the electric vehicle (EV) division of Mass-Tech Controls, Mumbai, to strengthen its capability in EV charging infrastructure in India (Page 5). The EV division's acquisition aims to complete Siemens India's e-mobility solutions portfolio and accelerate growth in the fast-growing e-mobility segment (Page 5). Siemens is expanding manufacturing capacities, exemplified by the reopening of the bogie factory in Aurangabad to service metro and export projects, showing commitment to the Mobility market (Page 9). New factories are being set up for e

Future growth expectations in sales/revenue/volumes?

Low voltage motors market grew at low single digit in units from 2018 to 2023. Future growth expectations are slightly higher than past growth, targeting mid single digit to high single digit growth over the next couple of years (mid-segment growth). Growth in sales/revenue is expected to align with market growth given the declining trend in commodity prices. The proportion of the low voltage motors business is expected to reduce relative to more rapidly growing segments like locomotives, electrification, signalling, e-vehicles, Smart Infrastructure, and Digital Industries. Digital Industries

Future growth expectations in earnings/operating earnings/profits/EPS?

The low voltage motors business grew at a low single-digit rate between 2018 and 2023. Future growth expectations are slightly higher than past growth, targeting mid-single-digit growth over the next couple of years. Digital Industries' profitability is expected to improve through a shift to SaaS models and higher-value digitalization solutions, potentially sustaining or expanding margins. Commodity price cooling may pressure margins in the low voltage motors business, but overall Digital Industries margins aim to move toward mid- to high-single digit growth. Mobility business (railways, metro

Current/ Expected Orderbook/ Pending Orders?

Siemens Limited reports substantial ordering and tendering activities in the Indian railways sector. Current notable orders include a Rs. 26,000 crore locomotive order and various electrification and signalling projects. There is an upcoming 12,000 HP locomotive tender expected around August. Multiple projects for Vande Bharat trains, 12,000 HP locomotives, electrification, and signalling are in the pipeline. The metro sector is being addressed on a case-to-case basis, with some metros forthcoming. Siemens has expanded capacities, including reopening its bogie factory in Aurangabad to service

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Siemens LtdQ2 FY23Electrical Equipment

Siemens Ltd Q2 FY23 Earnings Call Analysis

Revenue, margin, capex, fundraise and order book outlook from management commentary.

Price: ₹3,628P/E: 78.1Market Cap: ₹1.3L CrSector: Electrical Equipment

Management growth scorecard

Revenue

Category 3

Margin

Category 3

Fundraise

N/A

Order

Yes

Capex

Yes

2 of 4 growth signals are positive.

Full analysis

Revenue guidance

Category 3

→Low voltage motors market grew at low single digit in units from 2018 to 2023.
→Future growth expectations are slightly higher than past growth, targeting mid single digit to high single digit growth over the next couple of years (mid-segment growth).
→Growth in sales/revenue is expected to align with market growth given the declining trend in commodity prices.
→The proportion of the low voltage motors business is expected to reduce relative to more rapidly growing segments like locomotives, electrification, signalling, e-vehicles, Smart Infrastructure, and Digital Industries.
→Digital Industries business expects growth driven by automation, digitalization, SaaS models, and higher-value solutions beyond motors.
→Siemens plans to outsource motors moving forward without impacting overall Digital Industries growth and profitability.

Margin guidance

Category 3

→The low voltage motors business grew at a low single-digit rate between 2018 and 2023.
→Future growth expectations are slightly higher than past growth, targeting mid-single-digit growth over the next couple of years.
→Digital Industries' profitability is expected to improve through a shift to SaaS models and higher-value digitalization solutions, potentially sustaining or expanding margins.
→Commodity price cooling may pressure margins in the low voltage motors business, but overall Digital Industries margins aim to move toward mid- to high-single digit growth.
→Mobility business (railways, metros) and Smart Infrastructure, including e-mobility, are identified as key growth segments with substantial future ordering.
→Given the strategic focus on automation and digitalization, the growth in revenues and profits for Siemens Limited is geared towards these higher margin and faster-growing segments.

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Fundraise plans

→No specific mention of current or future new fundraising through debt or equity in the provided transcript.
→The discussion primarily focuses on the divestment of the low voltage motors business and strategic restructuring.
→Siemens Limited plans to distribute the entire sale consideration (after tax) as a special dividend, not indicating new fundraising.
→There is emphasis on optimizing the portfolio and growing core high-growth, synergistic businesses rather than seeking external financing.
→No direct references to plans for raising capital via debt or equity were made during the analyst call on May 19, 2023.

Order book

Yes

→Siemens Limited reports substantial ordering and tendering activities in the Indian railways sector.
→Current notable orders include a Rs. 26,000 crore locomotive order and various electrification and signalling projects.
→There is an upcoming 12,000 HP locomotive tender expected around August.
→Multiple projects for Vande Bharat trains, 12,000 HP locomotives, electrification, and signalling are in the pipeline.
→The metro sector is being addressed on a case-to-case basis, with some metros forthcoming.
→Siemens has expanded capacities, including reopening its bogie factory in Aurangabad to service metro and export projects.
→Transmission business is picking up with several TBCB substation and statcom inquiries.
→Power grid segment sees potential high-voltage projects with increasing grid volatility due to renewables.

Capex plans

Yes

→Siemens Limited has made a significant acquisition of the electric vehicle (EV) division of Mass-Tech Controls, Mumbai, to strengthen its capability in EV charging infrastructure in India (Page 5).
→The EV division's acquisition aims to complete Siemens India's e-mobility solutions portfolio and accelerate growth in the fast-growing e-mobility segment (Page 5).
→Siemens is expanding manufacturing capacities, exemplified by the reopening of the bogie factory in Aurangabad to service metro and export projects, showing commitment to the Mobility market (Page 9).
→New factories are being set up for emerging sectors like semiconductors, battery manufacturing, fuel cells, and solar, to support Digital Industries growth (Page 14).
→Investments are being made into digitalization solutions like cyber security, intra logistics, warehousing, and SaaS models to drive Digital Industries' profitability (Page 17).
→Focus on moving up the value chain from electrification to automation to digitalization, indicating ongoing investments in digital and automation technology (Page 8).

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