This Multibagger Stock Faces a Shocking Rs 136.93 Crore Tax Demand!

The company intends to contest the order through the appropriate channels and has stated that it does not foresee any significant financial impact from this demand.

On October 29, 2024, Siemens announced receiving a final assessment order from the Income Tax Department for the 2021-2022 assessment year, with a tax demand of Rs 1,369.30 million. Siemens intends to contest the order through the appropriate channels and has stated that it does not foresee any significant financial impact from this demand.

Recently, Proposed Demerger of Energy Business into Siemens Energy India.

Siemens has proposed a Scheme of Arrangement to demerge its Energy Business into Siemens Energy India Ltd. This strategic restructuring aims to allow both companies to focus on their core areas independently, enhancing operational efficiency and strategic direction. The reorganization is expected to improve focus for both Siemens Ltd. and Siemens Energy India Ltd. within their respective markets.

Expansion of Manufacturing Capabilities in India

The parent company has strengthened its commitment to India, announcing a significant capital expenditure (CapEx) plan of Rs 1,000 crore. This investment aims to establish India as a key manufacturing hub for global markets. The CapEx highlights Siemens’ confidence in India as a base for expansion, particularly within the growing energy sector, bolstering the country’s role in the company’s global supply chain.

Energy Business Focus on Transmission and Global Supply Chain

Siemens’ Energy Business is primarily driven by the transmission sector. The Goa factory will be integrated into Siemens Energy’s global supply chain, catering to domestic demand while serving as a key export base, marking Siemens’ commitment to strengthening its international reach in energy transmission.

Robust Order Pipeline and Business Momentum

Siemens is experiencing growth in the energy transmission and e-mobility sectors, supported by a strong enquiry pipeline. This aligns with increased government and private spending in sectors like data centers, pharmaceuticals, and healthcare. Siemens is well-positioned to leverage these opportunities as competitive activity increases in the expanding market.

Financial Performance and Shareholder Returns

In the past year, Siemens Ltd. has delivered a 104 per cet return to its investors, with a year-to-date return of 74 per cent. The company maintains a gross profit margin above 51 per sent, an operating profit margin of 13 per cent, and a net profit margin (NPM) of 10.64 per cent. These figures reflect stable financial performance and a strengthening position in both Indian and global markets.