Siemens Limited was incorporated as 'Siemens Engineering and Manufacturing Company of India Private Limited' on March 2, 1957. In March 1957, the company entered into a collaboration agreement with two foreign companies, viz., Siemens & Halske AG and Siemens Schuckertwerke AG of West Germany. Siemens AG, Germany, indirectly holds a 75% stake in the company, making it the flagship listed company of Siemens AG in India.
Siemens Limited offers products and integrated solutions for industrial applications for manufacturing industries, drives for process industries, intelligent infrastructure and buildings, efficient and clean power generation from fossil fuels and oil & gas applications, transmission and distribution of electrical energy for passenger and freight transportation, including rail vehicles, rail automation, and rail electrification systems. It is a global technology company that focuses on intelligent infrastructure for buildings and decentralized energy systems, on automation and digitalization in the process and manufacturing industries, and smart mobility solutions for rail and road transport.
Siemens Ltd has a Market Capitalization of ₹1,11,028 Crore as of the current date, making it one of India's prominent technology companies. Revenue: ₹17,507 Crore and Profit: ₹2,606 Crore for the most recent financial year. The company has delivered good profit growth of 18.7% CAGR over the last 5 years and has maintained strong fundamentals with minimal debt levels.
The company's stock is actively traded on major Indian exchanges and is part of several key indices including BSE 500, BSE Capital Goods, BSE 200, Nifty Next 50, Nifty 500, Nifty Energy, Nifty 100, Nifty Infrastructure, BSE Power, Nifty MNC, Nifty 200, among others, reflecting its significant market presence and institutional investor interest.
The company's business segments are: Energy, Smart Infrastructure, Mobility, Digital Industries, and Others. Each segment caters to different aspects of India's growing industrial and infrastructure needs.
The Smart Infrastructure segment derives maximum revenue and functions as a supplier of products, systems, solutions, and services for the transmission and distribution of electrical energy for power utilities, industrial companies, and infrastructure segments. Smart Infrastructure (32% of revenue) is the largest business vertical, offering smart meters, grid automation, and energy-efficient solutions, playing a pivotal role in modernizing India's electricity infrastructure.
Energy (30% of revenue) focuses on power transmission systems for critical sectors such as oil & gas, railways, and construction. Notably, Siemens contributed to electrifying Bengaluru Metro's Phase 2—a key urban mobility project. The energy segment has shown remarkable performance, with Revenue and Profit after Tax for discontinued operations for Q1 FY 2025 was INR 1,431 Crore (up 28%) and INR 243 Crore (up 158%), respectively.
Digital Industries caters to manufacturing, automotive, and pharmaceutical sectors, developing industrial automation software and sensors, aiding India's Industry 4.0 ambitions. This segment focuses on automation solutions for various industries and is crucial for India's digital transformation initiatives.
Mobility focuses on the rail transport ecosystem, supporting metros, trains, and related infrastructure with cutting-edge technologies. This segment is particularly important given India's massive railway network and urban transportation projects.
For Q1 FY 2025, New Orders rose 20% and were at INR 4,258 Crore, while revenue experienced some challenges. However, the company's Revenue and consequently also its Profit from Operations for this quarter were impacted by a slowdown in short-cycle private sector Capex spending and the normalization of demand in its Digital Industries business.
The company's quarterly performance shows:
* Siemens Ltd's net profit fell -27.49% since the last year same period to ₹582 Crore in Q4 FY2024-2025.
* In the quarter ending September 2024, Siemens Ltd declared a dividend of ₹12, translating to a dividend yield of 0.70%.
* The company has been maintaining a healthy dividend payout of 19.0%.
A significant corporate restructuring took place with the demerger of Siemens Energy. Siemens Energy India, spun off from Siemens Ltd, listed with a valuation exceeding ₹1 trillion. The combined market value of Siemens Ltd and Siemens Energy reached ₹2.14 trillion, reflecting significant growth post-demerger.
Sunil Mathur, CEO of Siemens Ltd, noted India's productivity is at 75%, significantly lower than Europe's 90%. He emphasized technology's potential to improve productivity and mentioned challenges faced by Indian MSMEs, including market access and finance.
As of September 30, 2023, Siemens Ltd had revenue from continuing operations of INR 17,701 Crore and 8,888 employees. The company operates across multiple locations in India, serving both domestic and international markets.
"With the announcements in the recent Union Budget, we expect a positive impact on our businesses from the Government's continued emphasis on building a world-class infrastructure, measures to boost consumption and the increased focus on manufacturing." The company is well-positioned to benefit from India's infrastructure development, manufacturing growth, and digital transformation initiatives.
The company's strong order book, diversified business portfolio, and established market position make it a key player in India's ongoing industrial and infrastructure development story. With government support for manufacturing and infrastructure projects, Siemens Ltd is expected to continue its growth trajectory in the coming years.
