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Siemens - Greater Demand For Automation, Digitisation Augurs Well: ICICI Securities

The digital solutions business is witnessing growth on the back of increasing focus on customer productivity, energy efficiency.

<div class="paragraphs"><p>A sign with the logo of Siemens company is on display outside its office. (Source:&nbsp;Reuters/Evgenia Novozhenina)</p></div>
A sign with the logo of Siemens company is on display outside its office. (Source: Reuters/Evgenia Novozhenina)

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ICICI Securities Report

In its FY22 annual analyst meet, Siemens Ltd. indicated that ordering momentum is strong across business segments led by both public and private capex.

Company continues to increase localisation, which may further expand margins. The digital solutions business is witnessing growth on the back of increasing focus on customer productivity and energy efficiency.

Domestic transmission tendering is likely to see pick-up with government plans to spend Rs 2.44 trillion for evacuation of 500 giga watt renewable energy by CY30.

Further, industrial decarbonisation-led capex – mainly on waste heat recovery, biomass, etc. – is most likely to drive growth in Siemen’s energy business.

FY22 total order inflow was up 43% YoY to Rs 194 billion driven by increased number of large-sized orders.

We expect the momentum to continue given government capex on infrastructure and private capex on key verticals such as semiconductors, data centres and electric vehicle.

Click on the attachment to read the full report:

ICICI Securities Siemens Concall Update.pdf

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