Siemens Profit Drops 42% in September Quarter, Hit by One-Time Base Effect

Siemens Ltd. reported a sharp drop in profit for the September quarter, missing analysts’ estimates and posting its steepest year-on-year decline since the Apr–Jun 2019 quarter. Revenue, however, grew strongly and topped expectations.

The Indian arm of Siemens AG follows a financial year from October 1 to September 30. Consolidated net profit for the final quarter of 2024-25 fell around 42% on the year to ₹4.85 billion, compared with analysts’ estimate of ₹5.17 billion. Revenue from operations rose 16% on the year to ₹51.71 billion, ahead of the Street’s ₹49.21 billion forecast. Sequentially, profit rose nearly 15% and revenue increased almost 19%.

Managing Director and Chief Executive Officer Sunil Mathur said last year’s profit had been boosted by a one-time gain of ₹690 million from a property sale, which made the year-on-year comparison weaker.

Total expenses for the quarter increased about 16% on the year to ₹46.30 billion. The rise was led by higher purchases of stock-in-trade, which jumped more than 29% to ₹11.70 billion, and a 10% increase in material consumption to ₹19.71 billion. Other direct costs climbed 22% to ₹3.57 billion, employee benefits rose more than 9% to ₹4.45 billion, and other expenses grew nearly 21% to ₹4.56 billion.

Smart Infrastructure, which contributes more than half of total revenue, delivered 20% growth to ₹27.25 billion. Mobility revenue increased 29% to ₹11.35 billion, while Digital Industries revenue rose just over 1% to ₹10.66 billion. Mathur said revenue growth was driven by strong momentum in Mobility and Smart Infrastructure, although Digital Industries volumes were limited by a lower order backlog and muted private-sector capital spending.

New orders for the quarter rose 10.5% on the year to ₹48 billion, while the order backlog increased 6% to ₹422.53 billion. For the full year ended September 30, net profit fell 22.5% to ₹21.04 billion, and revenue rose 8% to ₹173.64 billion.

Mathur said government spending on infrastructure remains strong and noted an improvement in consumption during the festive period following recent income-tax and GST changes. He added that the company is cautiously optimistic that this will eventually translate into stronger private-sector capital expenditure.