Are Siemens latest results good or bad?

Siemens has reported its financial results for the quarter ending March 2025, which indicate a challenging performance compared to the previous year. The profit before tax (PBT) for this quarter was Rs 222.00 crore, reflecting a notable decline of 44.36% year-on-year. Similarly, the profit after tax (PAT) decreased to Rs 452.06 crore, down 34.4% from the prior year.
On a more positive note, Siemens demonstrated a strong operating cash flow of Rs 1,669.50 crore, which has shown consistent growth over the last three years. Additionally, the company's cash and cash equivalents reached Rs 9,032.80 crore, suggesting an enhancement in short-term liquidity. However, the dividend payout ratio has fallen to 15.73%, indicating a trend of distributing a smaller portion of profits as dividends.

The financial results also reveal that non-operating income accounted for 40.56% of the PBT, which raises questions about the sustainability of the business model. Earnings per share (EPS) dropped to Rs 8.13, marking the lowest level in the last five quarters, which highlights a decline in profitability for shareholders.

In summary, while Siemens has shown strength in cash flow and liquidity, the significant declines in profit metrics and the reduced dividend payout ratio reflect underlying challenges. The company saw an adjustment in its evaluation based on these results.