Good day and welcome to Siemens Limited Quarter 4 and Full Year 2022 Analyst Call. This is Venkatesh, Head of Investor Relations at Siemens Limited. I trust all of you and your loved ones are safe and in good health. The conference will be on listen-only mode, and there will be an opportunity for you to ask questions after the presentation concludes. A few instructions: your camera and mics will be disabled. You would need to raise your hand by clicking on the raise hand button in order to ask questions. We will unmute the mic at our end when your turn comes to speak. We request you also to unmute your mic before you ask your question. On the call, we have Mr. Sunil Mathur, Managing Director and Chief Executive Officer, and Dr. Daniel Spindler, Executive Director and Chief Financial Officer of Siemens Limited.
Before I hand over to Mr. Mathur, let me begin with the safe harbor statement. Siemens Limited cannot give assurance to the correctness of such information and statements. These forward-looking information and statements are generally identified by the fact that they do not relate only to historical or current facts. Forward-looking statements sometimes use terminology such as targets, beliefs, expects, aims, assumes, intends, plans, seeks, will, may, anticipates, would, could, continues, estimate, milestone, or other words of similar meaning and similar expressions or the negatives thereof. By their nature, forward-looking information and statements involve known and unknown risks, uncertainties, and other important factors that could cause the actual results, performance, or achievements of the company to differ materially from any future results, performance, or achievements that may be expressed or implied by the forward-looking information and statements in this presentation.
Should one or more of these risks or uncertainties materialize, or should any underlying assumptions prove to be incorrect, the company's actual financial condition or results of the operation could differ materially from that or those described herein as anticipated, believed, estimated, or expected. Given the aforementioned uncertainties, prospective or present investors are cautioned not to place undue reliance on any of these forward-looking statements. No part of this transcript, nor the fact of its distribution, should form the basis of or be relied on in connection with any contract or commitment or investment decision whatsoever. Investor advisors' advice should be sought on specific situations from well-informed legal, investment, tax, financial, and management professionals. The transcript and its contents must not be distributed, published, or reproduced. This transcript does not constitute a recommendation regarding the securities of the company.
The analyst meet is being recorded, and the presentation, audio recording, and transcript will be submitted to stock exchanges and also hosted on our website. I now invite Mr. Mathur to begin his speech.
Thank you, Venkatesh. A very good morning to you all. Hope you're doing well. Families are safe and sound. We will carry out this presentation in three parts. I will start with a little bit of an overview about the business in the year gone by, in the last financial year 2022. I will then hand over to Daniel to give an overview of the financial status for the previous year, and then I will summarize at the end how we see the year 2023, financial year 2023, from an economic environment as also the focus areas of Siemens for the next year ahead. Let me quickly start then straight away with the highlights of 2022. We did see continued CapEx spend both by public and private sectors.
Of course, this was driven primarily by the public spending in CapEx: roads, bridges, airports, ports, railways being some of them, but primarily driven by public announcements. Private sectors were driven, or CapEx in private sectors were driven primarily by the PLI scheme to a large extent, but also as a throughput from the government spending in CapEx. For us, revenues were impacted to some extent, not a substantially major extent, but to some extent by supply chain challenges primarily outside India. So these were semiconductor delays, logistics delays in shipments, and so on. Not so much from within the country. Most of it was import content which were dependent, for example, on semiconductors, and also the delays in shipments that have been continuing, to be honest, for the last two or three years.
We have continued our focus on localizing, and I'll talk a little bit about this in the presentation, but this is something that we continue even into 2023 as well, and this will continue to be our focus to see how much more we can actually localize here in the country. Finally, digitalization has been really an area that has seen a major growth. Customers are increasingly looking at productivity areas and are increasingly looking for energy efficiency solutions, and both of these put together have really resulted overall in an uptake in the industrial digital solutions market for us. Moving on, in 2022, if I look at the energy space, there was not too much that happened on conventional energy, large-scale energy in terms of generation. A lot was happening on the small turbines, on the smaller-sized machines on generation.
I will come to that in more detail when we tell you what's happening in our energy business. Transmission did see an uptake, although a lot of the TBCB projects got pushed out into this financial year. So there was a slowdown in the actual conversion of TBCB. But on the whole, I think transmission did see an uptake as well. Marginal, I must say, nothing very, very substantial. A lot of the transmission, particularly in the large ranges, was done more by the private sector. Distribution, not too much happening there, particularly as a bulk of the distribution is happening in the States. And the DISCOMs have their own challenges, which we are all aware of. So CapEx has taken place. There have been some control centers that have come up, but really, it has been more or less flattish in terms of the distribution network.
Some uptake visible as some DISCOMs have gone into privatization, and those private sector companies have taken steps to go through CapEx as well as increase efficiencies there. But that has not been too much. On the infrastructure side, a boom in the data centers, great interest happening there. A large number of companies, global companies, coming into the country, setting up large numbers of data centers. Commercial buildings and complexes have also gone up. And of course, the railways is really going in for major CapEx spend in the last year. I must say this is probably the second year. 2022 was probably the second year in a row where the railways really increased their spend on CapEx, both on the electrification and signaling side, but also on the rolling stock side. On the industrial business overall, we see an uptake.
Yes, the automotive segment has not bounced back to what it was pre-COVID days, but we do see an increase in the volumes. The demand has increased, but not necessarily CapEx, and as a result of that, some areas are increasing, but not too much over there . eMobi lity, absolutely, particularly in the areas of commercial vehicles, which is where we are playing. For us, there have been increases in buses and tenders for e-buses and so on, and we see this really as a growth area. Food and beverages has been a little bit slow in terms of CapEx expansions. A lot of them have gone in more for productivity increases and cost savings, particularly in the areas of energy efficiency, but no major CapEx movement there. Chemicals is growing well. Pharma is doing well.
Intralogistics is really an area that has picked up terrifically in steel plants and a lot of other areas as well. We see this as a global trend, but also picking up terrifically here in the country. Of course, the global headwinds continue. The geopolitical turmoil continues. Inflation interest rates continue here in the country. Supply chain challenges globally will impact us here. I must say, though, we have been relatively insulated in terms of our market growth so far in the areas of what is happening geopolitically. Inflation and interest rates, yes, have gone up, but we do not see an impact of those in the previous year at least, slowing down CapEx activities or indeed even OpEx activity. So far, we have really not seen too much of an impact.
The only impact that is there is from global supply chain challenges and their linkages into the country. I now start with giving you a little bit of an overview about each of our businesses and how they have done. Our energy business saw a huge increase, 22% in the order income, a lot of it coming out of transmission. So we got a couple of large orders in the transmission space, again, primarily from private customers. For example, we did the relocation and conversion of a 220 kV substation, AIS to GIS, where we did bulk power receiving stations, got main receiving substations in place, and so on. But these are mainly for private power plants. Where we have seen an increase is in decarbonization solutions, particularly in the area of waste heat recovery, biomass, and so on.
Now, this is primarily the need for medium-sized companies to really sweat their assets. They would like to generate electricity out of every last element of steam that they are actually generating in their process plants. So be it steel plants, be it distilleries, be it sugar plants, cement plants, all of these plants are and fertilizer plants. All of these plants that have steam as a byproduct coming out over there, they are looking for ways and means to kind of recycle that to increase the or reduce the burden of energy costs that they have by using captive means. Modernization and upgradation of their existing steam plants has been also doing pretty well, and we've got a couple of good orders there.
Overall, we see, particularly on the generation side, a growth in the steel segment, sugar, paper, most of it in the lower segment, less than 10 MW for our steam turbines, industrial steam turbines. But this is something that we do believe is the market growing. The challenges, of course, have been the import contents and the sea freight for the components. And as I mentioned earlier, the fact that TBCB projects, a large number of them, got slipped into the next financial year, and we expect an uptake to happen in the current financial year as a result of that. But there is generally, as there are more renewables coming into the grid every year, we do see that the requirement for transmission products will actually increase.
There has been recently a paper that has come out by the government in that direction, outlining very clearly that there will be a growth in the transmission segment. If I move on to our Smart Infrastructure business, here again, our orders grew by 30% during the year. Here again, we looked at data centers, as I mentioned, primarily, where we brought in substations, RMUs, low-voltage panels, the integrated building management systems, etc., fire systems, security systems, all of this bundled together for data centers. Those are the kind of offerings that we have. We were also able to supply ring main units and compact substations to the railways, in airports, in metros, to some districts as well. So we see this business actually growing as the infrastructure business is growing here. We actually see this Smart Infrastructure activities growing substantially.
Commercial buildings, data centers, railways, metros, as these come into the market, this business will grow with our medium-voltage, low-voltage products, with our solutions on smart metering, with our solutions on integrated building management systems, fire safety, security as well. A large element or an element in the distribution part does involve import of components from other factories of Siemens around the globe, and this is where we have been impacted, not only in the increased cost of the components, but also with logistical delays on imports and all that, particularly in the area of GIS protection and the automation of plants, so I think this is something that we will have to watch. It is getting a little bit easier. We expect 2023 to be a little bit better than 2022, but the problem will definitely not go away.
Moving on to our Digital Industries business, here again, terrific growth in our volumes, driven primarily through sugar, petrochemical, steel, water, food and beverage, and chemicals business here, and here again, we are looking at solutions for analytical packages, for example, for the process where we are doing Continuous Emission Monitoring Systems, CEMS, liquid analytics in petrochemical plants and the greenfield petrochemical plant. We've done work on vaccine manufacturing, for example, where we provided medium-voltage, low-voltage products as well as fire safety automation solutions there, security solutions there, brought in our DCS and instrumentation products as part of this, but we see a growing interest in this business, particularly, as I mentioned, in getting greater visibility of the manufacturing process, getting greater productivity out of each of the machines in the process business in the discrete activities.
Intralogistics is going to be the next major area that we see companies getting great interest in. So we are doing work right now in a steel plant where they have requested us to optimize the logistics operations from the time the material comes into the plant till the time finished goods leave the plant and the movement of all the products within the steel plant as part of the process. And this is something that is possible through digitalization to try and bring in greater efficiencies in that process. We are looking at packages for grains where we can handle certain things over there, automation, electrical packages, and so on. So we are automating edible oil extraction processes for a food and beverage customer. We are looking at providing role management systems based on the location intelligence to metals customers.
We are looking at large waste and wastewater orders from water companies and Kaleshwaram flood damage project, for example, and so on. So there's a lot happening over here in the area of automation, digitalization as well. Mobility in the last year has seen, of course, the Pune-Hinjewadi project, which is basically the first PPP metro project in the country where we booked a large order of INR 9.5 billion in consortium with the Tata Group. We also got a large signaling order from RVNL and from Nagpur, etc. So there is a lot of work happening in the area of electrification, signaling, and so on. But we really see this as being a growth area. Now, you must have heard about our disclosure and seen our disclosure with regard to the fact that we have been declared L1 in the 9,000 HP electric locomotive project.
We will not talk too much about it right now because the LOA process and the contracting process is still underway. So I can't talk about too much at this point in time. All I would like to say, however, is, as I've been saying in the last two or three analyst meetings, mobility is an area of focus for us. We are looking at developing an integrated offering for the Mobility business in the country. We were already present in the electrification and signaling business. We are expanding on that and building on that. But we have now gotten into we opened a bogie factory in Aurangabad recently for metros. We have now gotten in, as you have seen, into the locomotive electrification of locomotive business as well. We already have component manufacturing for traction components in our Nashik factory.
So we are building our portfolio to address and localize the Mobility business in a much more serious manner and in a very strategic and focused manner here. You will hear more about this in the future meetings that we will have. Suffice to say right now, we are on the 9,000 HP. This is for 1,200 9,000 HP 6-axle electric locomotives. This will have a balancing speed of around 60 km an hour, and this will be a project which will run over a long period of time. More than that, at this point in time, I would not like to go into. At the next meeting, we will give you more details overall on the project, but for now, I think all that we can say is this business is growing well. The more we localize, the less dependent we will be globally.
To a large extent, we are already localized. We have already plans for localization. And this is a business that we expect to grow in the future. Moving on to our sustainability business, and this is something that we are really driving as we see increasing interest from our customers in finding solutions for decarbonization of their own operations. So I spoke at length already about waste heat recovery, where we are able to provide solutions to sweat existing assets, but also to bring down the inefficiencies, if you will, in the overall process plants that are there.
We are getting into energy efficiency programs in a very large way in the industrial segments, food and beverage, hospitality, automotive businesses, for example, primarily in the manufacturing, where we are able to demonstrate very clear carbon footprint reductions, where we are able to demonstrate savings for our customers in energy efficiency there as well. And this is something that we are building on. We have the know-how of the process of each of these operations. We are present in 23 market verticals. We understand the process of manufacturing. We are OEMs on the electrical side. We understand the automation process. And now we are just driving it to the next logical conclusion, which is the digitalization process in order to bring efficiencies in productivity, in energy efficiency as well. Electrical mobility is an area where we have already started collaborations. Our collaboration with Ashok Leyland is known to you.
In the meantime, we do have our charging infrastructure in Bengaluru and Chandigarh. Chandigarh is live for 38 e-buses and one depot. Bengaluru will be live shortly, but we are talking about over 300 buses there with operational depots and coming in as well. So this is really an area that we will grow as well, not only because we see it as a good business opportunity, but because we do have a large offering here from the grid to the socket in terms of complete solutions as well. Now, some of you have attended our Innovation Day earlier this year, where we launched our Xcelerator. For those of you who were unable to participate, this is our digital platform, global digital platform that basically is split into three parts. The first part is it provides an overview of all the portfolio, which are all connected.
So in the future, every single product of Siemens will be connected. And right now, there are already a host of products that are connected on the basis of which we can start making offerings for digitalizations to our customers. But we also realize that very often, customers would like to design their own solutions. And we need to be clear that we are not sticking to only Siemens products and Siemens solutions. We have to create a platform that is open and enabling for an ecosystem of partners.
So when you look at the platform, we will also have an ecosystem of partners there, system integrators, service providers, IT companies who can collaborate within themselves, who can collaborate together with us as well, and who can use the products and solutions that are available there to design tailor-made solutions for customers specific to their needs, including co-creation with a customer who says, "I want to design my own solution, and I want to bring in my own partners." So we offer this platform as well. And the third is really a marketplace that is evolving. It grows every day with use cases specific to each market vertical that we operate in, demonstrating the benefits and the impact of digitalization solutions that have been arrived at across the world with different products and solutions.
So this is basically a demonstration to, for example, a pharma customer who wants to know, "Can you tell me what are the pharma-based solutions that are available on digitalization and that have been carried out around the world, and what kind of impact has actually been demonstrated and generated out of these use cases?" So this is a platform that we are offering that basically allows our customers, our partners, and our salesforce to collaborate together to design what is really critical for them. The solution is the platform is basically interoperable. So it is not linked only to Siemens solutions or Siemens machines or Siemens software. It is interoperable. It is flexible. So you can play around with all the solutions and all the three verticals that I just mentioned.
It is open, which is very critical where machines may be supplied by a particular supplier, not necessarily Siemens. There may be software solutions and automation solutions that are not only Siemens, and most companies have their industrial networks tied up with multiple software partners and multiple software solutions, but we are able to say it doesn't have to be Siemens. We would like it to be Siemens, but it doesn't have to be Siemens. You can use the platform to develop with other software partners, with other technology partners to develop your own. We will slowly move up the stack to provide a lot of these solutions as a service. The most important fact is whatever is on this platform will be proven to be cybersecure, and that is going to be really the differentiator. Nothing comes onto the platform unless it is a proven cybersecure solution.
This basically is a bottom-up platform that starts with connected products, which is field devices, devices connected to machines and sensors, moves on to the edge computing, moves upward towards the cloud, and then enables everyone to develop their own applications and software solutions and dashboards that are unique to their own businesses. It doesn't matter whether you're an automotive company or a pharma company or even a steel company. You have the comfort level that you can get access to hardware. You can get access to automation. You can get access to solution. And you can bundle all this and design your own dashboards and apps to derive the maximum number of productivity out of your businesses over here. This is something which is an evolving platform. Some solutions are already there, but this is something that will grow over the years.
It is not a standard product. It's an evolving platform. The more products that come will be brought onto the platform, the more solutions that are generated around the world. And this will give access not only to solutions and products available in India, but also around the world. So customers can really see what have been the best impact of the solutions and use cases that have been carried out around the world, but also in India specific to their respective market segments. That's a little bit of an overview around the business. Let me hand over now to Daniel to give an overview of the financials for the last financial year. Daniel, over to you.
Thank you very much, Sunil, for that overview and also a very warm welcome from my side.
I'm very pleased that you have taken the time to be here with us in that call. Now, let me tap into the financial highlights. I would like to share with you some details about our fourth quarter and full year results for Siemens Limited during financial year 2022. I think it is fair to say that we delivered another strong performance during, and I guess you will also agree, during eventful 12 months of financial year 2022 against, thankfully, easing impact of global pandemic. However, more critically, ongoing crisis in Europe. India, however, experiences some signs of further normalization during the last six months, displaying stable macroeconomic parameters like GDP or PMI. Actually, the PMI was trending for 12 consecutive months above 50, which is a positive sentiment on the macroeconomic environment here in India.
Siemens Limited started the year with two very strong quarters, heading into this fiscal and delivered well on revenue, especially then towards the second half of the financial year. Before going into more details, I would like to give some general comments. In my opinion, globally, the macroeconomic environment remains extremely volatile. War is amplifying cost inflation and puts continued constraints on supply chains, and Sunil talked about that, especially from our international supply chains. We still see some ongoing constraints, and also, the pandemic still impacted productivity in some areas, and you have seen all the lockdowns in China, which is also leading to some form of disruption. We see an unchanged solid economic development in India and in our key markets like data centers, also food and beverage buildings, steel and cement, just to mention a few, maybe also infrastructure-related verticals like transmission, mainline, and metro.
We heard a lot about mobility and how the market is picking up over there. And also, automotive provides some good impetus. From a macro perspective, India's economy grew slightly lower with around 6.3% on higher prices in the second quarter of fiscal 2023. And maybe you have also read it on the focus that India will be the third largest economy by 2030. Public and private CapEx is still rising despite inflation and interest rate increases. And there was just another interest rate increase, 35 basis points a few days ago. However, the macroeconomic environment in India is, yes, to some extent volatile and dependent on further development of ongoing crisis, but also shows quite some stable and resilient development. And Siemens India navigated through these challenges actually very successfully. And that development is also reflected in the achievements of our businesses within their respective key verticals.
We have also seen some good progress. Sunil talked about it on strategic initiatives to drive digital and sustainable business, like we have showcased at our Innovation Day besides simplifying our portfolio, and customers undoubtedly continue to invest in their digital transformation as well and improve resource and energy efficiency, so sustainability is gaining further relevance. Now, let me tap a bit more into detail on the supply chain side, and we have talked about this also in our previous calls. It is unchanged, a critical topic. Some of what we have mastered and mitigated through that supply chain disruptions, but we will also see similar disruptions to some extent going forward. Semiconductors was one of the examples we have seen in the mobility environment, so some companies still struggle with missing deliveries or shortages.
However, we as Siemens here in India continue to work relentlessly with our suppliers and our factories to optimize deliveries and to avoid logistical congestions, so our focus is on mitigating the negative impact on our customers as much as possible and to keep deliveries from our factories at high levels in order to secure our revenue, but also the supply to our customers. Besides that, we have an effective commodity hedging like for aluminum, silver, and copper, and we do unchanged also very high levels from demand pooling for raw materials and components in order to help maintain strategic alliances with our key suppliers. Few words on C&S. Integration of C&S is progressing according to plan. Top-line growth as well as EBITDA remain within our expectations, and margin is in the upper single-digit range. We have seen a portfolio effect.
On July 1st, we divested our Large Drive Applications business, which was reported under Portfolio Companies, and that's why all the financials that I'm now talking about are based on continuing operations without large drives applications. With this, let me jump into our fourth quarter and give you a brief snapshot on the KPIs for July to September quarter. Orders were growing by 25.4%, and key contributors there were our energy and mobility with high double-digit order growth. Revenue across all businesses was some 10.8% year-over-year, also broad-based, I have to say, so the top-line growth momentum is really robust and broad-based with high double-digit in mobility followed by Digital Industries. I will talk about that in more detail then later on in the subsequent slides. EBITDA is stable at 11.1% or INR 4.7 billion, INR 470 crore.
Basically on the same level like previous year to top-line driven productivity and still ongoing cost-out measures, which are helping to secure our stable operational margin. With this, we could also offset adverse factors from inflation, from higher logistics, headwinds from FX and commodity, and also supply chain-driven higher material and logistics costs as we heard through Sunil's statements previously. Besides operational, we also have structural improvements. We still do have comparatively low discretionary spending. However, we see that events, marketing, travel, as expected, is slowly picking up. So after interest income and depreciation expenses, we recorded a profit before tax of 12.4% of revenue or INR 5.2 billion. After tax deduction, INR 1.3 billion current and deferred tax, we have recorded a profit of 9.3% of revenue or INR 3.9 billion.
But that is an absolute increase by 22.9% compared to previous year or in absolute terms, an improvement by INR 700 million. With this, our earnings per share also grew by 22.9% from INR 8.96- INR 11.01 per share. On the next slide, we talk about the full year performance. For the full year 2022, we have seen a very strong order increase by 43.1% and 18.3% in revenue, which is a book-to-bill ratio of 1.33. And that also is far above pre-pandemic levels that we have seen fiscal year 2019 or before. We have recorded an absolute all-time high in new orders in our second quarter, as well as an absolute all-time high in revenue in our fourth quarter.
It's fair to say that we have fully recovered from pandemic as well as from supply chain disruption setbacks, and we have continued our profitable growth in extremely challenging circumstances. Also, profitability, EBITDA is at 11.0%, only marginally down by 59 basis points year-over-year. Profit before tax stands at 11.5%, after tax at 8.6%, which is INR 12.5 billion. That means it's close to 20% higher than it was previous year. So overall, we see a long-term backlog in all businesses with continued healthy margins, which I believe is a very important message that we continuously see a very stable operational healthy margin quality in our order backlog. Lastly, we have achieved a INR 14.2 billion cash generation from operations out of ongoing working capital initiatives, despite in some areas higher inventories to secure our revenue and increased accounts receivables also in line with the revenue increase.
On the next slide, we do see our quarterly order development. Let's look into our order development in more detail in the next few minutes. This graph that I'm now showing to you shows the absolute numbers per quarter in orders over the last eight quarters, and highlighted in green, you see the four quarters out of financial year 2022. Above the columns, the percentages, we display the year-over-year growth rates, so you can see that we have been able in four consecutive quarters in financial year 2022 to achieve an absolute order intake above INR 40 billion in eight quarters in a row, a positive year-over-year growth, which actually accelerated during financial year 2022, so in quarter one and quarter two, as you nicely see on this graph, we saw a huge growth by 64.6% in the first quarter.
You have heard also Pune-Hinjewadi was contributing to this, but also a lot of other important and large orders as well. Similar to the second quarter, where we have seen a 70.2% growth even, also on the back of several large orders, which were amongst the highest ever. We see consistent growth not only on large orders, but also in our base business. Unchanged, our strong backbone is our short-cycle business, especially when it comes to Smart Infrastructure and Digital Industries. Clear reasons are continued drive in our main markets. There is strong momentum. Therefore, we were also able to further increase our backlog to INR 171.8 billion towards year-end. This is a remarkable order reach of well above one year.
One more thing to mention here is we saw towards the end of financial year 2022, especially quarter three and quarter four, normalization of an effect that we call advanced orderings. So some of our channel partners, customers were anticipating supply chain issues. And that's why there was quite a high effect in advanced orderings visible in the first half of the year, which was normalizing in the second half of the year. That's why you also see in line with that a decline in our absolute order growth. On the next slide, we talk about our business portfolio mix. Here, I want to draw your attention on our business portfolio based on new orders.
So currently, you see that on the left-hand side of the graph, we see a good absolute growth in short-cycling product business in the area of about 30%, like we see it in Smart Infrastructure and Digital Industries. On the other hand, large projects like in energy and mobility are slowly pushing our relative order mix towards more projects with a share of a bit above 62%. And that we also had predicted in our previous calls already that we see a slow move, slow push towards higher project portion. Furthermore, in the middle, we see a marginal increase in our domestic business to 85.8% share, which is the result of stronger domestic demand in line with the Indian economic strength compared to other global markets. On absolute numbers, the export business was growing as well by around INR 6 billion.
Finally, on the right-hand side, we see the split into public and private business. There's a continued shift towards private customers visible with a portion of about 84.5%. The reason being is hereby as well a strong push of our private short-cycling product business. Having said this, let me continue with more details on our revenue development. We see a continued increase in absolute revenue spiking in quarter four of financial 2022 with more than INR 40 billion, which is an all-time high. Revenue is ongoing, steadily rising for consecutive quarters. You can see plus 10.9% in the first quarter, followed by 7.7% in the second quarter year-over-year. Then in the third quarter, 50.6% +, based on large orders and also to some extent the advanced orderings that we have seen in the first half.
I spoke about it, but then also helping to drive the revenue momentum towards the second half of the financial year. So the growth is broad-based across all businesses, each recording positive revenue growth. And we will come to that in a minute. Book-to-bill, I mentioned already, stands at 1.33, and the order reach is well above one year, which is pointing towards further revenue momentum. So overall, you can summarize that we have seen a very strong resilience against supply chain delays based also on a candid inventory management, and that we are performing stringently on our backlog. With this, let me go towards our margin development of EBITDA. We have seen in quarter four an EBITDA of INR 4.7 billion, which is translating into a margin of 11.1% to revenue, slightly up by four basis points year-over-year. So last year, we also have seen 11.1% equivalent.
This four basis points increase is some INR 500 million in absolute terms. In quarter one, we saw a strong margin as well of +10. 7% or INR 3.3 billion, followed by second quarter, another strong one, 12.6%+ and INR 4.3 billion absolute. In quarter three, + 9.8% or INR 3.8 billion. The volatility that you are seeing here is especially due to FX and commodity impact. We will have a separate slide to explain that in more detail to you and to share more transparency on the impact that we are seeing, especially out of FX and commodities. On this slide, I would like to give you a bit more flavor on the development of the most important factors. We see unchanged FX conversion of revenue growth, maintaining our stable operational margin.
We still do see very low non-conformance costs in our project business, which also helps to secure a very stable operational margin. Like we have spoken about in our previous calls, we have implemented a bundle of cost control measures during the pandemic, which we will also keep in effect. We have experienced in some areas higher raw material component and increased freight or transportation costs. Wherever possible, we are forwarding this increased cost to our customers through price increases, but also through price variation clauses. With this, we can limit the effect, and we also have an efficient hedging strategy and do customer price adjustments wherever necessary and possible. Discretionary spendings are still on a comparably low level. However, it's slowly increasing, similar to travel and event activities, but still also relatively limited.
Nevertheless, I would expect this to slowly pick up also during financial year 2023 as things are more and more normalizing around the globe. Next slide. I want to give you, as already promised, some transparency on our EBITDA. This slide is explaining our underlying operational margin performance, putting EBITDA margins on a comparable basis. With this, we want to give you some transparency on FX gains and losses combined with gains and losses from commodities, especially copper, aluminum, and silver. In our annual report, you can see these results from FX and commodities under a separate line in other expenses. The impact from FX is due to fluctuation in pricing, and especially rupee against euro, but also to some extent against the U.S. dollar.
As you can see on this slide, in the previous year we had a gain of INR 365 million for the full year out of FX and commodities, whereas in financial year 2022, we had a very significant loss of INR 2.078 billion. So if you now take that into consideration, then you can see that the EBITDA on an adjusted basis actually climbed from 11.3% - 12.4% or increased by 113 basis points, so margin quality, underlying margin quality, actually increased if we eliminate the effect out of FX and commodities. In the fourth quarter, we have seen a similar effect. Last year, we had losses of INR 134 million versus this year, much higher losses of INR 1.1 billion, which is an impact of 230 basis points on our underlying margin, so quarter four, on a comparable basis of the FX and commodities, our EBITDA margin increased from 11.4%- 13.7%.
There are no other material extraordinary effects apart from the ones I mentioned. Last time, we have also talked about transportation and logistics costs. Here, we see a normalization of that effect. The main effect that we are seeing is unchanged coming out of a strong volatility from forex and commodities. With this, I come to my last slide, which is showing the performance per business. This slide is showing our new orders, revenue, and EBITDA margin in percentage to revenue for our four segments, which we call businesses, for the full financial year 2022. Let me start with energy. Energy is showing an unchanged strong resilience against global volatility with orders up 22% and revenue up by 13%. Growth contribution is from growing industrial customers and utility scale renewable developments and EPC players leading to higher growth.
For instance, in transmission, hydrogen offerings also support the growth, and Sunil nicely talked about that already before. We also have seen some big orders for AIS substations, air insulated switchgear substations, and waste heat recovery also again to mention here. On the revenue side, we executed on a healthy order backlog. And with this, also our EBITDA profitability, INR 6.3 billion absolute or 11.9% relatively to revenue, which is yes, a decrease by 236 basis points. However, again here, worthwhile to mention it's FX, commodities. And if we eliminate this effect, then we see an underlying margin, which is very stable, meaning that the EBITDA stands at 12.7% against the 13.3% previous year. So only a marginal decline of some 60 basis points in energy. So overall, I think we can conclude that there's a very solid operational execution visible in our energy business.
Next, Smart Infrastructure on the top right-hand side. Smart Infrastructure is driven by industries like oil and gas, cement, steel, infrastructure markets, especially worthwhile to highlight here data centers, transportation, also building solutions. Subsegments and further favorable markets in short-cycling industrial and electrical products offtakes also help here to boost our business performance in that segment. Same here, very solid performance across all metrics, orders up by 30%, revenue by 60%, boosted by electrical products. The same area where C&S Electric is active. We see accelerated activities in solutions and services across our portfolio. EBITDA margin stands at 10.4%, which is a margin improvement by 56 basis points benefited from high capacity utilization and ongoing cost-saving measures. Adjusted EBITDA, we would even see an increase by 185 basis points again after elimination of FX and commodity effects.
Digital Industries on the left bottom side, strong market environment in the first half supported by advanced orderings. I mentioned it on some channel, the anticipating shortages and therefore placed advanced orderings during the first half. From a market perspective, key markets are domestic demand in steel, metal, cement, complemented by emerging sectors like metro, aerospace, or tunnel automation, and also auto is now nicely picking up as well. Hence, we see a sharp surge in volume and top line, orders up by 53%, revenue by 20%. Operational margin stands at plus 11.1%, which is 230 basis points better than previous year. Here, I would like to emphasize that the margin improvement was very well supported by price adjustments, which was more than offsetting higher input and logistics costs. Similarly, in fiscal year 2022, DI was experiencing some negative impact from higher FX losses and commodity losses.
On a comparable basis, the profitability would have been even up by 440 basis points. So 230 basis points, as reported, 440 basis points underlying. We needed the higher inventories in DI to secure future deliveries, which compensated with advanced payments and supplier payable. With this, finally, let me talk about the full year performance of mobility. The order pipeline in mobility is exceptionally strong. We have experienced some project shifts in the past, besides now very huge tender activities from Indian Railways, which certainly will help also to increase our footprint in India when it comes to Mobility business. Orders up by 136% based on large orders like for trains and locomotives, metros, and our PPP Pune-Hinjewadi was already mentioned a few times, and also including an annual maintenance contract, but also electrification and metro lines. Revenue up by 56% out of execution of metro projects and components.
Although here Sunil gave already a lot of flavor on that topic as well. EBITDA performance is down to 6.7% by 511 basis points. However, still keeping a mid-single- digit bottom line, and reason being is here that we see quite some investment besides CapEx also into OpEx. We have just recently reopened our bogie factory in Aurangabad and deliberately we are investing here in CapEx as well as in OpEx to make sure that we can participate in the strong momentum that the Mobility business is having here in India. Maybe the same here in mobility, what I have explained for the other three businesses on a comparable basis, so eliminating again acquisitions and commodity, our margin would have been above 9%, so actually quite a minor drop if we take that into consideration as well.
Overall, Siemens Limited has performed considerably strong during the first half of fiscal year 2022 in volume and solid top line, and then especially delivering very well on revenue profitability as well as cash towards the second half of financial year 2022. With this, let me conclude with a few outlook, with an outlook on a few focus areas and priorities for financial 2023. It's about stringent and focused execution and gaining supply chain excellence. We continue to drive accelerated and profitable growth. We want to display, as in the past, a strong resilience to any form of crisis, which was a source of strength in the past. Order backlog beyond INR 170 billion and more than INR 40 billion of revenue in the first quarter is showing our strong resilience. The majority of our next 12 months' revenue is already in our books across all businesses.
We have a very high visibility in our short-cycle product business, which is actually also far-reaching, and then we continue to put emphasis on cost-saving and operational measures to ensure that resources are adequately aligned in order to drive operational efficiency and to avoid non-conformance costs, and with this, I would like to conclude my part on the financial highlights and hand back to Sunil to give us his outlook and his perspective on the next months to come.
Thank you, Daniel. So let me just conclude on how we see 2023. Our perspective is that government spending on infrastructure, CapEx, will continue. We'll continue to drive growth. That will have a knock-on effect on private CapEx as well. Independent of that, the PLI process and the PLI system will drive niche areas, for example, semiconductor manufacturing, data centers, e-vehicles, solar, etc., etc.
So overall, we are currently not seeing any slowdown in CapEx or in OpEx, neither from the government sector nor from the private sector right now. With the visibility that we have currently around, I do not expect with the current levels of interest rate and the current stabilized levels of inflation that there will be a slowdown in the near future. But what we have to watch is any impact that comes from the global headwinds, geopolitical production of semiconductors, logistic challenges, all of these, inflation in many countries abroad that are supplying to us, and the impact that that will have on the cost of components that we have to import. So those are, let's say, cautionary statements over there as far as that is concerned. Mobility, we will continue to expand our offerings, not only from the electrification signaling part.
We are looking at rolling stock, bogies, turnkey, etc. We will, however, be selective about participation in large projects, so where there are large projects, EPC projects, we will be very cautious about and look at the risks and look at the profitability hurdles that we have put in place, but when you are looking at components or products, as for example, locomotives are concerned, those will meet the margin hurdles that we have. They will continue to be, however, investments that we will make in all our businesses, including in mobility, in order to localize further, in order to make us more competitive. These investments could be in capacity expansions and bringing in new products, in new solutions. Our vacuum interrupter plant, for example, in Goa was a localization initiative that we have done that required investments, and we've done that.
Our bogie factory, as Daniel mentioned, we have made investments both in CapEx as well as in OpEx as we bring people on board, and as we start expanding the portfolio, localizing further, coming out with new business models, also increasing our focus on digitalization and on energy efficiency and decarbonization solutions, these will require us to invest. These will require us to look at different business models, and these will require us also to look at financing solutions in order to make sure that we are competitive, so we are geared up for growth. We believe that the market is now ready for that. Infrastructure will drive that growth in the country and will drive that growth for us in the company, so I will stop there and hand it over to you now for questions.
Thank you, Mr. Mathur.
We have all our colleagues here who would raise their hand for questions. I will invite one by one, and I would request each one of you to limit your questions to two questions per person in the interest of giving an opportunity to the rest of your colleagues as well. The first question is from Parikshit Luthra. Parikshit, you have.
Yeah, hi. Congratulations, Sunil and the team for a commendable performance in a challenging time. So my first question is on the mobility segment. So you recently are L1 in a large local order where there were very limited participants. Only two players were there. But there was a big gap between L1 and L2 for almost 80%. So are these orders in our margin threshold what we are reporting currently, and how will you reconcile this big difference?
Okay.
So I'm not going to comment on the competition, on the pricing of the competition. We are confident that we made a competitive offer. We are looking forward to closing the deal and moving it forward. I think that's the statement we can give. I'm not going to comment on the competition over here, but we are confident that the offer that we have made is a competitive offer overall.
Okay. Thank you, sir. The second question is within this, the 12,000 HP. So when do you expect that to get finalized? And even the Vande Bharat train where we have tied up with BEML, so when do we expect it to get closed? So these 400 Vande Bharat -
I don't comment on tendering processes and bidding processes, and I don't know when the Indian Railways will take out which tenders, but I can't speculate on that.
It would be pure speculation, Parikshit.
Okay. So just lastly, if I may, this locomotive factory, will it supply to even global markets? So how do you see the opportunity size or the market size for the locomotive segment, especially in the mobility? Within the mobility.
Are you talking only about locomotive, or are you talking about mobility in general?
Mobility in general, especially targeted to domestic and global markets, especially on the rolling stock side.
Yeah. So on the rolling stock side, there are multiple parts that we are already present in. So components that we have in Nashik, we will have both a demand domestically as well as globally for components, and that's coming out of Nashik, traction motors, inverters, and so on. When you look at the bogies, we've already announced that we got an order for 200 bogies from Romania for metros, for metro in Romania.
So our bogie factory will be used for manufacturing bogies, not only for the domestic requirement of metros, but also for the global requirement. So also with the 9,000 horsepower locomotives, we will be looking first, of course, at ensuring that we can deliver on the commitments over here. But thereafter, we will also be looking at what the export potential is for these locomotives. As you know, we already have over 30 factories in our company or in our network here in India. They are all part automatically of the global supply chain of manufacturing facilities as well. And our local factories, our bogie factory, our components factory on the road, and I'm sticking only to the rolling stock. All of our factories and all of our manufacturing items here are available not only to the local market, but also to the export market within the Siemens ecosystem.
Thank you. Let's move on to the next question from Harshit Patel. Harshit, you've been unmuted. Please go ahead.
Harshit, you need to unmute yourself at your end as well .
Yes. Thank you. Thank you very much for the opportunity. We have posted a very strong order intake. We have posted a growth of almost 43% in financial year 2022. So could you give us a sense on what would have been the impact of pricing within that? If you could give a qualitative flavor segment-wise on the price increases that we did last year, that will be very helpful.
So we won't give that price increase because it's very, very difficult. To be honest, it is average room temperature. Whether we are talking about energy, there is a price increase element inherent in our generation solutions.
There is a price increase inherent in our transmission solutions. The price increases are on account of inflation, on account, as Daniel mentioned, forex and commodity, part of which is possible to pass on, part of which is not possible to pass on. This goes, Harshit, with all our other segments as well. It depends even on our digital segment. Part of it is linked to the inflation. The price increases are also linked, for example, as Daniel mentioned, to forward ordering where, because of delays in deliveries, customers have started ordering in advance. There are some price implications linked to that as well, etc., etc. It doesn't make sense, and it's too complicated to kind of split that down segment by segment.
Understood, sir. My second question is on the C&S Electric. We have posted a break-even at the EBIT level in the fourth quarter.
Do you see the C&S EBIT margins converting towards the parent-level Smart Infrastructure margins in FY 2023, or will it take more time? Also, a follow-up to that would be, where are we in the journey of making C&S an export hub? Did exports contribute majority towards C&S FY 2022 sales, or there is still some way to go about it?
So I will let Daniel talk about the margin levels. The important factor, however, and I don't know what you're comparing as being the margin of the parent, right? The margin of the parent is Smart Infrastructure margin, and that is completely different. These are locally manufactured projects, products over here. I have stated repeatedly in analyst meetings as well as in the press that the strategic intent of C&S was to grow the global business and build on the local business.
I think we are well on track, as Daniel mentioned over there, regarding the margin development. I'll ask Daniel to give a qualitative comment on that.
Yeah. Yes, I'm Sunil Mathur. Well on track. The integration basically has been concluded. So all our integration costs have been already catered for. There's nothing more to come to it. Now, C&S is running on a very stable business. We have also spoken about that the market in electrical products is very promising. We saw a very good growth momentum in financial year 2022. The outlooks are also promising for the next quarters to come. Insofar as we are confident that we will achieve the margin quality that we have outlined in our business perspectives.
Absolutely. I think the overall strategic intent of C&S is well on track.
Daniel, just a small follow-up to that.
The depreciation level since C&S seems to be very high. Is there any particular reason, and will the depreciation eventually come down? So could you throw some light on that?
We have to consider here purchase price allocation. So there are also some depreciation out of, for instance, technology or customer relations. That's why you see some impact out of there. That's a typical purchase price allocation that you're doing when you have an acquisition.
Understood. Thank you very much for answering my question.
Thank you, Harshit.
Let's move on to the next question from Deepak.
Hi, sir. Hope you can hear me fine.
Yeah, we can hear you. Please go ahead.
Yeah. So maybe just one question on the locomotive segment again.
Given that you're looking at projects with a 35-year timeline, how are we trying to mitigate the risk in terms of dealing with labor manpower from the Indian Railways, the cost of infrastructure build-out at each of these facilities, and are these sort of assured take-or-pay contracts as well as working capital? So in general, how are we mitigating the risk for all of these large locomotive tenders that are in the market right now?
So firstly, these are product supplies. These are not project supplies, right? So this is not an EPC, which involves a detailed erection commissioning, etc., etc., at a project site. We are not building townships. We are not building depots, etc., etc. So to that extent, the risk element is substantially reduced. We have got very clear risk mitigation measures in place, thought out, costed in, and we will be monitoring this very, very carefully.
Deepak, if that was your question.
Yeah. No, sir. Maybe just a follow-up on the overall. In terms of base orders and in general with commodity softening, how are we kind of looking at the pricing element in the market? Do we kind of see pricing element sustaining, or do we kind of see any competitive pressure to base product pricing across all the segments?
So I think, yes, there is continued competition. Now, the competition is not getting easier. It is getting tougher in all the segments that we are operating in. And that's why we continue to localize. That's why we continue to innovate. That's why we continue to come out with new business models and new solutions. And that is going to be the differentiator. It's not only pricing.
It's also about what value proposition you are able to deliver for the products and solutions that you're offering. And I think that is the entire packet that we are now concentrating on. It is not just about delivering a product and trying to compete on price. It's also about delivering a value proposition that differentiates us from the competition. And that's what we are now focusing on.
Thank you, Deepak. Let's move on to the next question from Rahul. Rahul, you can unmute yourself and ask the question, please.
Yeah. Thanks for the opportunity. Sunil, many congratulations for continued strong performance for the company. I've got two questions. Now, we've seen a very sharp increase in new orders. You're sitting on highest-ever order backlog for a very long time. But the revenue growth is lower.
Now, in this context, I want to ask you, are there any capacity constraints that you are facing? You could maybe discuss capacity utilizations at segment level or at a country level. Are there any specific areas where you are reaching peak capacity and therefore unable to deliver due to those capacity constraint, or this is purely based on the project cycle? Because these are short-cycle orders. So that's my first question. Thank you.
So you are right. Our order volumes or our order backlog is continuing to grow. And you are also right that our revenue is not falling in line with the order increase. Two or three areas over here. Firstly, a clear statement: we do not have capacity constraints within any of our factories in the country. So this is not due to underutilization or overutilization of capacities within the country.
Our capacities are continuously enhanced, are continuously expanded based on the order volumes that we are looking at coming in. We are not tailor-making our order entries to the capacities available, nor are we restrained on any of our deliveries due to capacity constraints. There are two major reasons, and you outlined one of them already. It's just normal project business where delays or not delays, partly delays from the customer side, but just general project cycles don't require deliveries to happen immediately. The second is, of course, the interdependence with supply chains abroad. I would say to some extent, maybe not a hugely material extent, but nevertheless, it is an element that has also slowed down our volumes. If I were to take the segments and I look at energy first, in our energy generation and transmission, we don't have capacity constraints. We are in line with the market.
We are delivering on track. We don't have any capacity constraints there, nor is there a slowing down substantially in the volumes of revenue, at least in the Energy on the Energy side, other than what there may be marginally on account of some project cycles, which is normal. If I move to the Smart Infrastructure, in some part of the business, there is definitely constraints due to import contents being delayed, available or delayed, semiconductor part of them, but also component deliveries and logistic challenges on the other. It is impacting the import content of the Smart Infrastructure business, but not the domestically manufactured and domestically delivered content as well.
If I move to the Digital Industries, absolutely, this is where the majority of the revenue slowdown has occurred, primarily coming out of the import content that we have because we do not have local manufacturing on the Digital Industries. On the mobility side, it is primarily, again, coming primarily out of project cycles and delivery schedules there. So we don't really have too much of a slowdown on that. Daniel, do you want to add to that in any way?
No, Sunil. You mentioned all the key contributors. Interestingly, and we showed that orders are coming down, whereas revenue is increasing. And this is exactly the effect out of the large orders that we have seen in the first half of the year plus advanced orderings, which we are now executing out of a very strong order backlog towards the second half and also towards financial year 2023.
Insofar as we are happy that we see an order book well above one year with a healthy margin quality, as we have seen in quarter four already of financial year 2022. Insofar as I think we are well equipped for financial year 2023.
Great.
That's the first question. I just have one more question. On the mobility, can you throw some light on the scope of Siemens and BEML in the recent local orders? And is this the collaboration which will continue even for 12,000 horsepower orders? Also, you could talk about.
So the local order, just to clarify, the local order does not have BEML in it. This is Siemens. And the local order does not have BEML in it.
Thanks, Rahul. We'll move on to the next questions. Sujit, Dhananjay, just a small request since both of you are from the same organization.
If I could request Sujit, you to go first with one question, and Dhananjay, you can go with the next. I think Dhananjay has dropped out. Sujit, please go ahead.
Yeah. Thank you for the opportunity. Since most of the questions are on mobility, let me shift focus to Xcelerator. Does Xcelerator mean that Siemens MindSphere actually gets submerged into that, and therefore this gets transformed into Xcelera tor? How does this work?
So it's not a submerging part or merging part. The MindSphere will be a part of the Xcelerator and is one of the applications that will be present on Xcelerator.
Sure. And in this mobility order, localization content, what is it mandatory? You spoke about Aurangabad-Nashik facilities, but would there be a locomotive facility within Siemens India, or you would be sourcing from other Siemens entities globally or in India, if there are any?
And are there any escalation clauses? This is a long-run contract.
So again, I'm not going into details yet until the order is signed, and we are able to comment in more detail on that. Suffice it to say that the locomotive order will be very largely localized, very largely, ve ry materially localized.
Localized within Siemens India, listed entity?
Localized within India. There will be an element that will be within Siemens, and there will be an element that is bought out, as is normal.
Bought out from the group mostly.
I'm not commenting on details further.
Sure. Thank you.
Thank you, Sujith. Next question is from Ankur Sharma. Ankur, you can unmute yourself.
Yes. Yeah. Sorry. Yeah. So thanks, Mr. Mathur, for the very detailed presentation and very, very helpful as always.
So my first question was on the energy business, which is also amongst the larger segments that we have. So we've seen transmission orderings actually being quite weak for the last few years. Despite that, our energy business has actually done reasonably well this year as well. Orders are up 22% in 2022, if I'm going to the right. So if you could help me both, how do you see ordering on the transmission side kind of panning out over the next year or so, both the HVDC side or on the regular transmission, also on the other side, heat recovery, the turbine orders, etc.? So if you could help us understand, how do you see that space kind of panning out?
So let me start with the transmission segment there.
I think if you want to get the latest on how we see the market, it is basically there is a very recent paper that has been issued, I think as recent as yesterday or the day before, from the CEA outlining the additional requirements that are going to be necessary on the transmission side to meet the increase in renewable generation in the country. If we have to get to 500 GW of renewables by 2030, it will mean that the transmission network is going to have to be upgraded. You will need a lot more FACTS coming in. You will need a lot more STATCOMs coming in as you start having unstable grids due to the renewables. So that will definitely increase. HVDCs, to be honest, have not been too many, as you are aware in the last couple of years.
There are one or two on the horizon that you are all aware of. How long, whether they are practical and whether they actually come to a tender stage, we're not sure. Whether they are technically viable, we are not sure. Techno-commercially, financially viable, we are not yet sure. But we do see HVDC also being an element coming in. But primarily, my guess would be it would be in the area of STATCOMs and FACTS, solutions that will come up there in general. Linked to the entire renewable story, you will also see a lot more happening on flexible ramp-up of generation.
As the grid becomes unstable and as you've got to manage peak load requirements, the ramping up, and as coal becomes less attractive because of the sustainability requirements, there is going to be a need for power plants to be able to ramp up and ramp down much quicker at shorter notice, resulting in much less usage of fuel, of coal. And this is the kind of solution that we have to offer in terms of flexible ramp-up of machines. So I do see as India moves towards greater renewable power, the transmission generation areas will be enhanced. I do see also a shift very clearly coming as medium-sized companies are looking more to sweat their existing assets and cut their energy costs. They will be looking to squeeze the last kilowatt out of every element of steam that they get in their process plants and in their manufacturing areas.
And this is where you will get a lot more happening in the area of waste heat recovery, biomass, and so on.
Let's move on. Thank you, Ankur. Let's move on to the next question from Jonas Bhutta. Jonas? Yeah, Ankur.
Yeah. Sure. Thank you, Mr. Mathur and Daniel, for the presentation. Just a single question. And that revolves around the share of traded goods. So what we've seen in the last five years between FY 2018 to 2022, that the share of traded goods as a percentage of sales has sort of moved up by about 500 basis points-600 basis points from 23% of sales to roughly 28%-29%. While we understand that some bit of this would be linked to the sales growth in the DI segment, but there again, we see that the DI segment as a proportion of sales has just gone up 300 basis points.
So just trying to understand which other segment seems to be driving the increase in traded goods, and will this in the long term handicap us in any form in our margin expansion going forward? Thanks. That's my only question.
Jonas, when you talk about traded goods, are you talking about traded goods, for example, in DI, which come from the group company, or are you talking about overall traded goods in the total usage of products that we are selling here in the country?
This is the total that is shown in the P&L. Just for reference, it amounted to roughly INR 29.78 billion, sorry, INR 44.5 billion in FY 2022.
So I'm not aware exactly of the numbers that you're talking about.
All that I can surmise is that as you see the volumes growing, as there is more growth happening in DI, there will be a natural increase in traded goods, but more importantly, as the project business increases as well, there will be a bought-out component that happens there. We have also the third element is the factories. We have put up or we have expanded our operations in Nashik. We have expanded our operations in our Goa factory. We have expanded our operations in the bogie factory, so as we come into that kind of expansion mode, the level of traded goods will definitely increase, and these will be goods that we will buy from our supply chain, add on to our existing, and these are not raw material, but these are components and materials that will come from the supply chain.
A lot of the traded good increases that you are looking at are also linked to stock in transit. And that is really what is probably also contributing partly to that.
Sure. Thank you.
Thank you, Jonas. We'll move on to the next question from Charanjit.
Ye ah. Hi, sir. Good morning. Thanks for the opportunity. So my first question is, if you look at most of the segments are firing very strongly from the end market perspective for Siemens. So if you have to look at from next two to three years growth perspective, then how you see each of these segments or overall at a company level top-line growing for Siemens? And my second question is, you have talked quite a lot about localization initiatives in each of the segments.
So from a better margin perspective also, how do we see that scaling up from these 12% levels going forward? And what are the further levers for this margin recovery going forward? These are my two questions.
Okay. So let's start with the growth in the markets that we are looking at, and I'll go segment by segment. I think as far as the energy business is concerned, I've just mentioned how I see the overall growth of the energy business as the renewables come into the system, as decarbonization measures increase as well. And as industrialization increases, the need for GW is going to increase as well. So I mean, I think it is very clear that the total installed capacity will probably double by 2030. That will, and primarily in the range of renewables. But there will be continued baseline base loading with conventional.
Therefore, I see transmission solutions coming in. I see modernization and upgrades of power plants coming in. I see flexibilization coming in there, so on the energy side, I see, let's say, the market continuing to grow fairly stably. What will depend on largely, and I'm not being overly optimistic here, will be the state of health of the transcos and DISCOMs and the speed of ordering that they actually have there. When I look at the smart infrastructure segment, which is operating primarily in buildings and commercial complexes and parks and ports and airports, I think it is very clear to all of us that we do see a growth in the infrastructure in the country, and I think this should also aid the expansion overall in the market for electrification, for our digital solutions, for fire safety, building automation, etc.
For e-vehicles, the growth in e-vehicles, the growth in data centers will definitely be growth drivers for the markets in the years to come. When I look at the Mobility business, we've already discussed at length how we see the railways expanding their network. Vande Bharats are coming in, locomotives are coming in, metros are going to be awarded. So I do see our Mobility business in the market for mobility growing as well. Finally, our digitalization business of industrial private sector growth is definitely here to stay. As I mentioned, not only as a fallout of the CapEx in infrastructure, but also as industry sees the expanding demand coming in, particularly in new areas, semiconductors, solar cells, hydrogen, etc., e-vehicles, batteries, data centers, etc.
As a lot of these segments do start growing, chemicals, steel, cement, as these segments do start expanding, I do see a growth in the markets in the years to come. On the question of EBITDA expansion or not, look, this will be a double-edged sword over here. There will be investments that we will make in portfolio, in manufacturing, in expanding capacities. And those investments will obviously come at a cost. There will be CapEx. There will be OpEx as we expand the number of people, as we expand in terms of hardware as well. There will be those investment decisions that will continuously now come in as we now accelerate our growth curve.
I think for all of you who've been following us very, very carefully for the last eight years- 10 years at least, we've spent a lot of the time first consolidating our position, then expanding our existing position, concentrating on the margin qualities, concentrating on cleaning up the volumes of our business, concentrating and consolidating our position in the market. We are now looking at the accelerated growth area where we are looking at expanding our offerings here in the country. We are looking at new business models. We are looking at digitalization. We are looking at the move in infrastructure, the very clear growth in infrastructure, the growth in digitalization, and the growth in renewables, and as we see the market expanding in these three major areas, infrastructure, renewables, and the industry in general, we will be growing on those lines as well, so the EBITDA will reflect that.
In some years, there will be impacts of investments in there. There will be the impacts as we go in for growth. There will be the impacts in there, however, also of digitalization expansions and so on. So EBITDAs will be a reflection of how we grow in the next couple of years.
We are over time, but we will take last two questions. If you could limit it to one question each, please. Bhavin, over to you, please.
Thank you. So I had a couple of questions. So just one is margins in the Digital Industries were always in the single- digit, but we saw 11%, and you mentioned 400 basis points higher adjusting for FX. And the lower margins were due to higher import content. So what has changed here? What is sustainable in your view? The second is we've seen Europe and Germany going through the energy crisis.
So any potential of reallocation of manufacturing benefiting India? The last question is high-level. Globally, manufacturing has gone through a significant supply chain disruption and consequently high inventory levels. So are you seeing a risk of inventory correction impacting the demand? Thanks. These are my questions.
Okay. I'll take one of them, and then Daniel can answer the remaining two. On the reallocation manufacturing to India, look, the opportunities are always there. Let's be very clear that it is not easy to close a factory in Europe and reopen a factory somewhere else. So we will see what happens in the energy space. We will see what happens overall in the shift in supply chains globally. Right now, we are not seeing a specific closing down of capacities in other parts of the world and building up similar capacities in India.
Yes, as the demand in India grows, as has always been our case, we will set up capacities in India to suit that demand. On the question of margins and digitalization, Daniel, would you want to answer that and the high inventory levels, how do you see that moving in the future?
I'm happy to do so, and I mean, thankfully, we have seen a good margin improvement in Digital Industries. This is manifold. First of all, we have seen a very strong growth, and I'm very pleased to see that we have an extremely robust domestic demand. Sunil mentioned already there's not much of a value add that we are having here in India. So we don't have factories in Digital Industries. So it's a distribution business, which gives us a very solid margin. On the other hand, it is also transfer price-driven.
Insofar the margin quality will not be as you may see on a global level. Nevertheless, we have seen a good margin improvement underlying even better, so if you take out FX and commodities, we have seen a very solid margin improvement, and the reason for this is, again, two or maybe even threefold. First of all, higher productivity. Secondly, let me tap also into the price increases, so we have been able, especially in Digital Industries, based on a strong performance in the market and the strong demand of our customers as well as channel partners, we have been able, in line also with competition, to improve our price quality, not only once, but even more than this, and we have implemented price variation clauses, which makes us less prone to FX and commodity fluctuation.
Certainly, I think we also have seen a very strong product portfolio with a shift towards digitalization, more software content, which typically also gives you a better margin quality. Also, this helps to see that the margin is nicely improving in Digital Industries, now even into a double-digit profitability level, which we haven't seen in the past. Hopefully, this answers your question. Inventory levels, you want to talk about? Inventory levels, we have seen in line with the market demand. We have built up our inventories. We have had a very enhanced inventory management in terms of not having excessive inventory levels because that makes us, again, prone to FX and commodity volatility. We have managed that very tightly, and we have been able, with the inventory levels that we have been building up in the first half, to secure our revenue.
And that also reflected in a very nice margin quality as well throughout the entire financial year 2022, actually.
Okay. Umesh, if I could request you to just stick to one question, please. We are already well over time. Over to you, Umesh.
Yeah. Thank you for the opportunity. So, sir, my question is more of structural in nature. So I was reading that in an example like integrated propulsion system and steel tank transformer for 9,000 HP, we have already localized the system for the product. So basically, from a structural point of view, for each of the segments in your company, how much of localization ideally we should target or we are planning to achieve? And secondly, sir, in a new tender of Vande Bharat 200 trains with consortium with BEML, so what could be our scope of work over there?
So on the localization, there is no specific target, right? Our localization program is run on two foundations. The first is what is the volume of the market that justifies localization. Second is what are the price levels that we have to achieve to be competitive in the market? Now, if we are able to source products, components, solutions out of the global supply chain and still meet the market price levels competitively and grow our business, then we will do that. The moment we start believing that the market opportunities are large and that we have got, as a result of that, we do need to localize in order to meet the price levels competitively here, that is when we start doing localization. So it's a classical business case. What are the volumes? What are the price levels? What is the return on investment that we have?
Based on that, we look at localization. We have an added advantage in localization where it is local not only for our own requirements. When we build our business cases, we also look at what the global requirements could be and play those into our business cases as well so that effectively all of our factories are part not only of a local for local supply chain, but also local for global supply chain. That's our strategy for localization, not only now, but it's been our strategy at least for the last 20 years. On the Vande Bharat and the BEML and the content and so on, it is a bid that is out, and I won't talk about an ongoing bidding process.
Yeah. Thank you, Umesh. The last question from Gopal. Gopal, you can unmute yourself and go ahead, please.
Yeah. Am I audibl e?
Yes, please.
Yeah, yeah. Thanks a lot for the opportunity. Sir, I have just two questions. One is on this green hydrogen CapEx, which is being talked about in India. How well Siemens India is prepared to capture that opportunity? And which is the entire value chain where we already have some offering or we are workin g on?
So in India, currently, we do not have electrolyzers, and we are not doing electrolyzers for hydrogen. It is available in Siemens Energy globally where they do have the technology for electrolyzers. We are looking at the technical commercial viability here in the country, the size of the market, and so on, and whether it makes sense for us to do something at this point in time or wait until the business case really makes sense.
So currently, we do not have anything concrete which is commercially viable on green hydrogen. Okay. And secondly, on the Mobility business, the margins are lower than the company average. Some you explained like unabsorbed overheads because of the capacity creation. Considering the current order book, which is more of the project side, should one expect a decline in the margins going ahead?
So I think Daniel did not talk about underutilizations. Quite to the contrary, Daniel said that the dip in the margins is because we have invested in setting up new capacities. There has been CapEx investment, but there has also been OpEx investment. And as we grow any business, whether it is our Smart Infrastructure where we put up a vacuum interrupter plant in Goa, whether it is our bogie factory, whether it is for future opportunities that we see.
And this was a question earlier on as well. Our margins will reflect a mix of investment in CapEx, in OpEx, in digitalization, increase in digitalization content. Will also be a mix of export and local. Will also be a mix of project and product. So right now, I can't give you a specific statement on what the margin quality is going to be. Suffice it to say that the orders that we are taking are being taken into account what we believe are competitive margin levels.
Okay. Sure, sir. Yeah. Thanks a lot, sir. Thank you very much.
So with that, we close the call for this analyst call. Thank you for attending this call, and have a great day.
Thank you very much. Bye-bye.
Thank you. Thank you. Bye-bye.