Siemens Limited Share Price Rises Following NCLT Approval for Energy Business Demerger

Market Performance

Siemens Limited's share price increased by 8% to reach Rs 5,520 during morning trading on March 26, 2025. This rise follows the approval from the National Company Law Tribunal (NCLT) for the company's energy business demerger. Despite this recent gain, Siemens' share price has declined by 18% since the beginning of 2025. At approximately 12:35 pm., the stock was trading at Rs 5,502, reflecting a 7.6% increase from the previous National Stock Exchange (NSE) close.

NCLT Approval and Demerger Details

The NCLT has approved Siemens Limited's plan to separate its energy business, allowing Siemens Energy India Ltd to operate as an independent entity. This restructuring will provide Siemens shareholders with one share of Siemens Energy India for each Siemens Ltd. share held as of the record date, which is set for April 7, 2025. The demerger became effective on March 25, 2025, with an appointed date of March 1, 2025. Siemens Energy India is scheduled to be listed as a separate company.

Leadership changes have also been announced. Guilherme Vieira De Mendonca, formerly head of Siemens' energy business, will be the managing director and CEO of Siemens Energy India. Harish Shekar, who previously led the finance division for the energy business, will take on the executive director and CFO role.

This demerger aligns with Siemens AG's global strategy, which involved spinning off its energy business in 2020. Siemens Ltd. in India is adopting a similar approach to streamline operations and enhance focus.

Financial Performance (Q3 FY25)

• Revenue: Rs 3,587.2 crore (down 3% year-on-year from Rs 3,709.5 crore)
• Net Profit: Rs 614.3 crore (up 22% year-on-year from Rs 505.4 crore)
• EBITDA: Rs 401 crore (down 11.5% year-on-year from Rs 453 crore)
• EBITDA Margins: 11.2% (down from 12.2% in the previous year)

Summary

Siemens Limited's share price rose following the NCLT's approval of the energy business demerger. The restructuring will allow Siemens Energy India Ltd to function as a separate listed entity, with leadership appointments already in place. While Siemens reported a 22% increase in net profit for Q3 FY25, revenue and EBITDA declined compared to the previous year. This demerger aligns with Siemens AG's global strategy designed to concentrate on core business areas and optimize operations in India.