Are Siemens latest results good or bad?

Siemens has reported its financial results for the quarter ending March 2025, highlighting a challenging performance compared to the previous year. The profit before tax (PBT) decreased to Rs 222.00 crore, reflecting a decline of 44.36% year-on-year, while the profit after tax (PAT) was reported at Rs 452.06 crore, down 34.4% from the prior year.
In terms of operational metrics, the company experienced a net sales growth of 2.57%, recovering from a decline of 14.52% in the same quarter last year. However, the consolidated net profit showed a decline of 27.49%, contrasting with a significant growth of 70.26% in the previous year. The operating profit margin, excluding other income, fell to 10.98%, indicating a decrease of 4.36% compared to the previous year.

Siemens reported a strong operating cash flow of Rs 1,669.50 crore, demonstrating consistent growth over the past three years, and its cash and cash equivalents reached Rs 9,032.80 crore, reflecting improved short-term liquidity. However, the dividend payout ratio has dropped to 15.73%, indicating a trend towards distributing a smaller portion of profits as dividends. Additionally, non-operating income accounted for 40.56% of the PBT, raising questions about the sustainability of the business model. The earnings per share (EPS) fell to Rs 8.13, marking the lowest level in the last five quarters.

Overall, Siemens has seen an adjustment in its evaluation, reflecting the complexities of its current financial landscape amid these operational trends.