Siemens' total order intake in the last 12 months (June 2009 - June 2010) has been Rs120b, a growth of 41%. Order intake was boosted by a large order, valued at Rs24.91b, from Kahramaa, Qatar. Currently, the company has an order book of Rs135b, up 34%. In the current quarter (ending September 2010), Siemens in consortium with Siemens AG, has received another large order from Torrent Power to set up two combined-cycle power plants. We expect the company to end FY10 (September-ending) with an order-book of Rs154b, up 51%. Order flow momentum is likely to remain strong in the near term, with possibility of more mega orders.
Strong play on Infrastructure, Industry and Transportation: A diversified Engineering company, with exposure to Power (40% of its revenues), Industry (40% of sales), Transportation (14% of sales), Healthcare, etc, Siemens is one of the biggest beneficiaries of the revival in the capex cycle in India.
- Domestic T&D: Siemens is a technology leader in HVAC and HVDC transmission systems, and stands to benefit significantly from investments in the 765kV space. It has invested meaningfully in setting up manufacturing facilities for high-end products such as extra-high voltage transformers and GIS systems, which should bear fruit in the next few years.
- Industry: Siemens has strong presence in automation, drives and projects across industries and stands to benefit from the revival in industrial capex.
- Railways: Siemens has set up manufacturing plants for several key products like traction motors. It is among the key beneficiaries of investments in railways, metro rail systems and other large projects like the Dedicated Freight Corridor.
