#EBITDA #MARGIN
In FY25, the EBITDA margin stood at 12.9% as compared to 10% in FY24. It was driven by improvement in gross margin. The EBIT margin from textile segment was ~12% in FY25 as compared to 8.4% in FY24. The same for acrylic fibre was 1.4% as compared to 3.2% in FY24. The margin expansion in textile business was mostly on account of fabric division as the cotton yarn spread continued to be impacted in FY25. In FY24, the EBITDA margin stood at 10%. The Indian cotton prices witnessed some corrections. The international brands placed small orders mainly due to inflation, economy going into recession and carried over inventory. The concern related to inventory was resolved and was back to normal levels.
In FY25, the EBITDA margin stood at 12.9% as compared to 10% in FY24. It was driven by improvement in gross margin. The EBIT margin from textile segment was ~12% in FY25 as compared to 8.4% in FY24. The same for acrylic fibre was 1.4% as compared to 3.2% in FY24. The margin expansion in textile business was mostly on account of fabric division as the cotton yarn spread continued to be impacted in FY25. In FY24, the EBITDA margin stood at 10%. The Indian cotton prices witnessed some corrections. The international brands placed small orders mainly due to inflation, economy going into recession and carried over inventory. The concern related to inventory was resolved and was back to normal levels.
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#COMPANY #POTENTIAL
โข The global textile market size and Indian textile market observed steady increase led by expansion, product mix improvements and exports. โข Indiaโs total production of cotton in the 2024-25 season have been estimated at 302 lakh bales of 170 kgs. Total production of cotton in the year 2023-24 (provisional) is 32.5 million bales (bales of 170 kg each). The total cotton supply till end of the cotton season 2024-25 (i.e. up to 30th September 2025) is estimated at 357.44 lakh bales of 170 kgs. The cotton exports for 2024-25 crop year are estimated to be at 18 lakh bales of 170 kgs. (Source: IBEF) โข Indiaโs textile industry is mainly cotton based, therefore, cotton plays a major role in the Indian economy. โข The cotton production in India for the year 2022-23 was 343 lakh bales (of 170 kgs each). India is the 2nd largest consumer of cotton in the world with a consumption of 311 lakh bales. โข As of 31st December 2024, the Indian cotton prices are costlier than the international prices. Indian spinners are having difficulty in importing cotton because of 11% import duty. The minimum support price in India is also leading to increase in cotton price. This has resulted in the narrow cotton yarn spread, and hence several small spinners in India are shutting down their business. Around 6-6.5 million spindles (~15% of India's capacity) have stopped production due to unviable costs. โข In Bangladesh, the roadways (which takes 10 days) are blocked, due to which the industry has to send the material by ship which takes 21 days. There is a gap of ~10 days and 12 days on the delivery side. โข USA has put a 90 days pause on tariffs which expires on 8th July 2025. They will be imposing tariffs across the world. China will be the most expensive in terms of the duties and currently it has a huge volume of export to USA. In case China is not competitive, CASE STUDY that business will go to all other countries which will include Japan, Bangladesh, Pakistan and India.
โข The global textile market size and Indian textile market observed steady increase led by expansion, product mix improvements and exports. โข Indiaโs total production of cotton in the 2024-25 season have been estimated at 302 lakh bales of 170 kgs. Total production of cotton in the year 2023-24 (provisional) is 32.5 million bales (bales of 170 kg each). The total cotton supply till end of the cotton season 2024-25 (i.e. up to 30th September 2025) is estimated at 357.44 lakh bales of 170 kgs. The cotton exports for 2024-25 crop year are estimated to be at 18 lakh bales of 170 kgs. (Source: IBEF) โข Indiaโs textile industry is mainly cotton based, therefore, cotton plays a major role in the Indian economy. โข The cotton production in India for the year 2022-23 was 343 lakh bales (of 170 kgs each). India is the 2nd largest consumer of cotton in the world with a consumption of 311 lakh bales. โข As of 31st December 2024, the Indian cotton prices are costlier than the international prices. Indian spinners are having difficulty in importing cotton because of 11% import duty. The minimum support price in India is also leading to increase in cotton price. This has resulted in the narrow cotton yarn spread, and hence several small spinners in India are shutting down their business. Around 6-6.5 million spindles (~15% of India's capacity) have stopped production due to unviable costs. โข In Bangladesh, the roadways (which takes 10 days) are blocked, due to which the industry has to send the material by ship which takes 21 days. There is a gap of ~10 days and 12 days on the delivery side. โข USA has put a 90 days pause on tariffs which expires on 8th July 2025. They will be imposing tariffs across the world. China will be the most expensive in terms of the duties and currently it has a huge volume of export to USA. In case China is not competitive, CASE STUDY that business will go to all other countries which will include Japan, Bangladesh, Pakistan and India.
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#COMPANY #OUTLOOK
โข On the spinning side, they have undertaken significant modernization projects. Most of the modernization is expected to be complete by September 2025. โข The companyโs fabric production capacity is planned to increase by 38% by the end of CY25. This expansion covers both existing products and new synthetic fabric capacity. The expansion for existing capacity is expected to come in full by Q3 FY26, while synthetic expansion will come in two phases, with phase one to be operational in Q3 FY26. So, they will be converting the grey fabric proportion to dyed processed fabric, for which they have witnessed strong demand from both existing and new customers. โข They will be installing new capacity of technical textiles. In the first phase, it will add capacity of 15 lakh meters of fabric per month, out of which ~70%-80% will be polyester and 20%- 30% will be nylon. The application will be towards sportswear & of ~25%-30%. activewear and in the industrial market such as parachute fabric. This will target customers like Decathlon, Columbia and some other industrial customers. They will be not be manufacturing filament yarn for technical textile. Company will be sourcing it, weaving and processing it. It is expected to be complete by September 2025. โข On the technical textile, they have been ordering its machinery. It will be in two phases. In the first phase, they are aiming for a capacity of 15 lakh meters per month (80% polyester and 20% nylon) and expecting profitability of PBDIT to sales to be in the range
โข On the spinning side, they have undertaken significant modernization projects. Most of the modernization is expected to be complete by September 2025. โข The companyโs fabric production capacity is planned to increase by 38% by the end of CY25. This expansion covers both existing products and new synthetic fabric capacity. The expansion for existing capacity is expected to come in full by Q3 FY26, while synthetic expansion will come in two phases, with phase one to be operational in Q3 FY26. So, they will be converting the grey fabric proportion to dyed processed fabric, for which they have witnessed strong demand from both existing and new customers. โข They will be installing new capacity of technical textiles. In the first phase, it will add capacity of 15 lakh meters of fabric per month, out of which ~70%-80% will be polyester and 20%- 30% will be nylon. The application will be towards sportswear & of ~25%-30%. activewear and in the industrial market such as parachute fabric. This will target customers like Decathlon, Columbia and some other industrial customers. They will be not be manufacturing filament yarn for technical textile. Company will be sourcing it, weaving and processing it. It is expected to be complete by September 2025. โข On the technical textile, they have been ordering its machinery. It will be in two phases. In the first phase, they are aiming for a capacity of 15 lakh meters per month (80% polyester and 20% nylon) and expecting profitability of PBDIT to sales to be in the range
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Vardhman Textiles VTL 350-400
Expected level 500
Support 310
Expected level 500
Support 310
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๐๐ผ๐ป๐ด ๐ง๐ฒ๐ฟ๐บ ยฎโข
Bharat forge 1000-1120 Expected level 1400 Support 850
1317๐๐
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Siemens Company Details
Siemens is a technology company focused on industry, infrastructure, mobility, and healthcare. Siemens (India) Limited was incorporated in the year 1922 as a private limited company and currently, is the flagship listed company of Siemens AG in India. The company operates in 4 segments: Energy, Smart infrastructure, Digital industries & Mobility and follows a financial year of October-September. Energy segment provides fully integrated products, solutions and services across the energy value chain of oil and gas production, power generation and transmission for various customers. Smart infrastructure portfolio covers systems for low & medium voltage distribution, solutions for smart grids & energy automation and low voltage power supply systems. Digital industries contains portfolio of leading-edge automation, drives and software technologies covering the complete life cycle from product design and production execution to services for discrete and process Industries. Mobility segment is a supplier of solutions for passenger and freight transportation including rail vehicles, rail automation systems, rail electrification systems, road traffic technology and IT solutions. The company is positioned along the electrification value chain โ from power generation, transmission and distribution to smart grid solutions and efficient application of electrical energy. During the year, the companyโs major highlight was securing an order valued at โน26,000 crore to supply 1,200 locomotives for the Indian railways. This has been the largest order in the history company. Also, it had acquired the EV division of Mumbai-based MassTech Controls Private Limited, primarily engaged in design, engineering and manufacturing of a wide range of alternate current chargers.
Siemens is a technology company focused on industry, infrastructure, mobility, and healthcare. Siemens (India) Limited was incorporated in the year 1922 as a private limited company and currently, is the flagship listed company of Siemens AG in India. The company operates in 4 segments: Energy, Smart infrastructure, Digital industries & Mobility and follows a financial year of October-September. Energy segment provides fully integrated products, solutions and services across the energy value chain of oil and gas production, power generation and transmission for various customers. Smart infrastructure portfolio covers systems for low & medium voltage distribution, solutions for smart grids & energy automation and low voltage power supply systems. Digital industries contains portfolio of leading-edge automation, drives and software technologies covering the complete life cycle from product design and production execution to services for discrete and process Industries. Mobility segment is a supplier of solutions for passenger and freight transportation including rail vehicles, rail automation systems, rail electrification systems, road traffic technology and IT solutions. The company is positioned along the electrification value chain โ from power generation, transmission and distribution to smart grid solutions and efficient application of electrical energy. During the year, the companyโs major highlight was securing an order valued at โน26,000 crore to supply 1,200 locomotives for the Indian railways. This has been the largest order in the history company. Also, it had acquired the EV division of Mumbai-based MassTech Controls Private Limited, primarily engaged in design, engineering and manufacturing of a wide range of alternate current chargers.
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#SALES #GROWTH 5 Year CAGR 11.9%
In FY24, sales rose 14% YoY to โน22,240 cr, led by strong growth across mobility, smart infrastructure and digital industries. New orders stood at โน23,564 cr (v/s โน46,383 cr in FY23). Excluding the large 9,000 HP electric locomotive order received in FY23, new orders rose by ~14% in FY24. In Q1 FY25, the Energy business was classified as discontinued operations. In 9M FY25, sales (excluding the discontinued operations of Energy business) grew by ~5% YoY to โน12,193 cr. Segment-wise, revenue for smart infrastructure, mobility and low voltage motors grew, driven by order execution; however, digital industries sales declined due to lower execution. New orders rose ~24% YoY to โน15,240 cr (v/s โน12,287 cr in 9M FY24). Order backlog stood at ~โน42,845 cr in Q3 FY25. .
In FY24, sales rose 14% YoY to โน22,240 cr, led by strong growth across mobility, smart infrastructure and digital industries. New orders stood at โน23,564 cr (v/s โน46,383 cr in FY23). Excluding the large 9,000 HP electric locomotive order received in FY23, new orders rose by ~14% in FY24. In Q1 FY25, the Energy business was classified as discontinued operations. In 9M FY25, sales (excluding the discontinued operations of Energy business) grew by ~5% YoY to โน12,193 cr. Segment-wise, revenue for smart infrastructure, mobility and low voltage motors grew, driven by order execution; however, digital industries sales declined due to lower execution. New orders rose ~24% YoY to โน15,240 cr (v/s โน12,287 cr in 9M FY24). Order backlog stood at ~โน42,845 cr in Q3 FY25. .
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#EBITDA #GROWTH 5 Year CAGR 15.4%
In FY24, EBITDA grew by 25% YoY to โน3,104 cr, led by improvement in gross profit. This was further supported by project execution in the mobility and energy businesses. Major expenses for the company constituted cost of materials ~23%, purchase of traded goods ~24% and project bought outs ~21%. In 9M FY25, the EBITDA de-grew by ~12% YoY to โน1,390 cr, led by increase in operating expenses and employee benefit expenses. Other expenses included a one-time demerger expense of โน63 cr. Excluding the same, EBITDA declined by ~8% YoY to โน1,453 cr. Segment-wise, the company witnessed lower volumes and higher material costs in the Digital Industries segment during the quarter.
In FY24, EBITDA grew by 25% YoY to โน3,104 cr, led by improvement in gross profit. This was further supported by project execution in the mobility and energy businesses. Major expenses for the company constituted cost of materials ~23%, purchase of traded goods ~24% and project bought outs ~21%. In 9M FY25, the EBITDA de-grew by ~12% YoY to โน1,390 cr, led by increase in operating expenses and employee benefit expenses. Other expenses included a one-time demerger expense of โน63 cr. Excluding the same, EBITDA declined by ~8% YoY to โน1,453 cr. Segment-wise, the company witnessed lower volumes and higher material costs in the Digital Industries segment during the quarter.
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#PAT #GROWTH 5 Year CAGR 19.8%
n FY24, PAT grew by 39% YoY to โน2,718 cr, backed by improved operating profit, higher other income and lower effective tax rate. Other income grew by ~86% YoY on account of sale of property of โน230 cr during FY24 (v/s โน24 cr in FY23) and dividend received from subsidiaries of โน146 cr (v/s โน78 cr in FY23). In 9M FY25, PAT declined by ~20% YoY to โน1,203 cr, led by lower operating profit. It included an extraordinary gain of ~โน6 cr on account of the sale of properties in Q3 FY25 (v/s ~โน221 cr in 9M FY24) and demerger expenses of โน63 cr in Q2 FY25. Excluding these, PAT declined by ~1% to โน1,261 cr (v/s โน1,277 cr in 9M FY24)..
n FY24, PAT grew by 39% YoY to โน2,718 cr, backed by improved operating profit, higher other income and lower effective tax rate. Other income grew by ~86% YoY on account of sale of property of โน230 cr during FY24 (v/s โน24 cr in FY23) and dividend received from subsidiaries of โน146 cr (v/s โน78 cr in FY23). In 9M FY25, PAT declined by ~20% YoY to โน1,203 cr, led by lower operating profit. It included an extraordinary gain of ~โน6 cr on account of the sale of properties in Q3 FY25 (v/s ~โน221 cr in 9M FY24) and demerger expenses of โน63 cr in Q2 FY25. Excluding these, PAT declined by ~1% to โน1,261 cr (v/s โน1,277 cr in 9M FY24)..
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#EBITDA #MARGIN
In FY24, EBITDA margin expanded by 124 bps YoY to 14%, led by gross margin expansion of 261 bps YoY. Further aided by rising volumes, favorable portfolio mix and better pricing. In 9M FY25, EBITDA margins contracted by ~215 bps YoY to 11.4%, primarily due to increase in other expenses and employee benefit expenses as a percentage of revenue. Other expenses included a one-time demerger expense, excluding which, the EBITDA margin contracted by ~164 bps YoY to 11.9%. Segment-wise, operating margins during 9M FY25 contracted on account of lower margins in the digital industries, low voltage motors (portfolio companies has been renamed to low voltage motors) and mobility segment to ~7.1%, ~4.3% and ~5.9%, respectively (v/s ~12.9%, ~9.4% and ~6.6%, respectively in 9M FY24). While smart infrastructure expanded on a YoY basis to ~13.6% (v/s ~13.1% in 9M FY24).
In FY24, EBITDA margin expanded by 124 bps YoY to 14%, led by gross margin expansion of 261 bps YoY. Further aided by rising volumes, favorable portfolio mix and better pricing. In 9M FY25, EBITDA margins contracted by ~215 bps YoY to 11.4%, primarily due to increase in other expenses and employee benefit expenses as a percentage of revenue. Other expenses included a one-time demerger expense, excluding which, the EBITDA margin contracted by ~164 bps YoY to 11.9%. Segment-wise, operating margins during 9M FY25 contracted on account of lower margins in the digital industries, low voltage motors (portfolio companies has been renamed to low voltage motors) and mobility segment to ~7.1%, ~4.3% and ~5.9%, respectively (v/s ~12.9%, ~9.4% and ~6.6%, respectively in 9M FY24). While smart infrastructure expanded on a YoY basis to ~13.6% (v/s ~13.1% in 9M FY24).
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#ROCE
In FY24, the metric rose to 26.29% (v/s 21.88% in FY23), backed by growth in the operating profit. The company has been able to improve its ROCE, and this was on the back of growth in earnings for the year. The improvement in earnings was largely driven by smart infrastructure and digital industries segments. Large orders were bagged in Energy, and mobility sectors, followed by smart infrastructure and digital industries. Private capex across verticals and continued focus on increasing digitalization business helped in improving the ROCE for the company.
In FY24, the metric rose to 26.29% (v/s 21.88% in FY23), backed by growth in the operating profit. The company has been able to improve its ROCE, and this was on the back of growth in earnings for the year. The improvement in earnings was largely driven by smart infrastructure and digital industries segments. Large orders were bagged in Energy, and mobility sectors, followed by smart infrastructure and digital industries. Private capex across verticals and continued focus on increasing digitalization business helped in improving the ROCE for the company.
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#ROE
In FY24, ROE for the company improved to 19.11%, backed by rising net profit. The order growth was robust across all its businesses, backed by healthy demand. While demand in digital industries continued to stabilize as it normalized. Excluding the locomotives order, the book-to-bill ratio stood at 1.13x during the year. The company is focusing on driving profitable growth, with digitalization being a key focus area which would further help in improving the profitability and maintaining healthy return ratios of the company, going ahead.
In FY24, ROE for the company improved to 19.11%, backed by rising net profit. The order growth was robust across all its businesses, backed by healthy demand. While demand in digital industries continued to stabilize as it normalized. Excluding the locomotives order, the book-to-bill ratio stood at 1.13x during the year. The company is focusing on driving profitable growth, with digitalization being a key focus area which would further help in improving the profitability and maintaining healthy return ratios of the company, going ahead.
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#Management of the company
The management of the company continues to focus on profitable growth, besides introducing innovative solutions and enhancing its digitalization offerings across all business segments. Management is optimistic of government introduced reforms to stimulate Indiaโs GDP and believes to benefit from its various initiatives like Make in India, Digital India, Power for AII, Smart cities, Modernization of the railways and Atmanirbhar Bharat.
The management of the company continues to focus on profitable growth, besides introducing innovative solutions and enhancing its digitalization offerings across all business segments. Management is optimistic of government introduced reforms to stimulate Indiaโs GDP and believes to benefit from its various initiatives like Make in India, Digital India, Power for AII, Smart cities, Modernization of the railways and Atmanirbhar Bharat.
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#COMPANY #POTENTIAL
โข The Government has announced a projected capex of โน11.1 trillion in the Budget 2024, ~11% higher than the prior year. โข Growing population along with increasing electrification and per-capita usage will provide further impetus to the power sector. โข Innovation and investment in infrastructure is the key to scaling up manufacturing and growth. India's GDP is expected to grow on the back of innovation, globalization, favorable demographics, and reforms. Domestic demand and consumption will remain the country's strongest economic engine and India has an opportunity to catapult itself as a specialized manufacturing hub in select sectors. โข Demand continues to grow in the manufacturing industry for automation, cloud-based digital services, data analytics solutions and digitalization in its push towards Industry 4.0. โข Foreign participation in the development and financing of generation and transmission assets, engineering services, equipment supply and technology collaboration in nuclear and clean coal technologies is also expected to increase. โข Under Mobility business, Indian Railways has been allocated a capital outlay of ~โน2,620 cr during the budget 2024-2025. The Governmentโs capital outlay and initiatives that are aimed at improving logistics efficiency and improving operations provides huge opportunities for the transportation solutions from Mobility - for instance, Metros, locomotives, trainsets, bogies, signaling and electrification. While the Mobility Business participates in many of these opportunities, its order position is largely dependent on the timing when these opportunities are tendered.
โข The Government has announced a projected capex of โน11.1 trillion in the Budget 2024, ~11% higher than the prior year. โข Growing population along with increasing electrification and per-capita usage will provide further impetus to the power sector. โข Innovation and investment in infrastructure is the key to scaling up manufacturing and growth. India's GDP is expected to grow on the back of innovation, globalization, favorable demographics, and reforms. Domestic demand and consumption will remain the country's strongest economic engine and India has an opportunity to catapult itself as a specialized manufacturing hub in select sectors. โข Demand continues to grow in the manufacturing industry for automation, cloud-based digital services, data analytics solutions and digitalization in its push towards Industry 4.0. โข Foreign participation in the development and financing of generation and transmission assets, engineering services, equipment supply and technology collaboration in nuclear and clean coal technologies is also expected to increase. โข Under Mobility business, Indian Railways has been allocated a capital outlay of ~โน2,620 cr during the budget 2024-2025. The Governmentโs capital outlay and initiatives that are aimed at improving logistics efficiency and improving operations provides huge opportunities for the transportation solutions from Mobility - for instance, Metros, locomotives, trainsets, bogies, signaling and electrification. While the Mobility Business participates in many of these opportunities, its order position is largely dependent on the timing when these opportunities are tendered.
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#Company #Outlook
โข The margins are currently lower due to investments and is expected to improve going forward. โข A consortium between Siemens AG, Siemens Mobility GmbH, Siemens Limited and Alstom Transport India Limited has been awarded the contract for the electrical and mechanical system works of a project by Pune IT City Metro Rail Limited. The project is to be completed in 39 months. Siemens Ltd will provide project management, turnkey electrification, signaling, communications and depot works (equipment) for this project. The order size of Siemens Ltd is to the extent of โน900 cr. โข They received the third export order from their parent company for bogies, to be distributed across different parts of the world. While the bogies business is relatively slower from a domestic perspective, they continue to receive orders in terms of exports, aiding them to grow the business. โข Among the large orders secured in FY24, the company received an order for the electrification of Bengaluru Metro Phase 2 from Bangalore Metro Rail Corporation Limited (BMRCL) worth ~โน7.7 billion.
โข The margins are currently lower due to investments and is expected to improve going forward. โข A consortium between Siemens AG, Siemens Mobility GmbH, Siemens Limited and Alstom Transport India Limited has been awarded the contract for the electrical and mechanical system works of a project by Pune IT City Metro Rail Limited. The project is to be completed in 39 months. Siemens Ltd will provide project management, turnkey electrification, signaling, communications and depot works (equipment) for this project. The order size of Siemens Ltd is to the extent of โน900 cr. โข They received the third export order from their parent company for bogies, to be distributed across different parts of the world. While the bogies business is relatively slower from a domestic perspective, they continue to receive orders in terms of exports, aiding them to grow the business. โข Among the large orders secured in FY24, the company received an order for the electrification of Bengaluru Metro Phase 2 from Bangalore Metro Rail Corporation Limited (BMRCL) worth ~โน7.7 billion.
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Siemens 2700-3100
Expected level 4000
Support 2451
Expected level 4000
Support 2451
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๐๐ผ๐ป๐ด ๐ง๐ฒ๐ฟ๐บ ยฎโข
Adani Port 1050-1190 Expected level 1500 Support 890
1441๐ฅ๐ฅ๐ฅ
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