Diversified group Siemens Ltd reported a huge 76.5% decline in net profit at INR 36.42 crore in the third quarter ended June 30 amid weak market conditions and unbooked profits, due to customers delaying offtake. It had reported net profit of INR 154.77 crore in the corresponding period last year.

The company follows a January to December financial year. The company registered sales of INR 2,793 crore, up by 2% over the same period last fiscal.

Commenting on the dismal results, Mr Armin Bruck MD of Siemens said that "Due to the uncertain economic environment coupled with high interest rates, our customers, across all our businesses, are experiencing a drop in capital expenditures. While our short-cycle business has remained stable, the volumes in our long-cycle project business have declined.”

Mr Bruck said that "Our profitability has also been impacted through increased project costs and unbooked profits due to customers delaying offtake.”

The statement said that a comparison of the profits for past periods was also vitiated by the fact that the profits in those periods include adjustments arising out of revisions in revenues and costs related to ongoing projects.

Mr Bruck said that "We continue to concentrate on operational efficiencies to manage the challenges of this uncertain business environment... we are putting our plans to open a local manufacturing facility for wind solutions at Vadodara on hold,"

Siemens in India comprises 14 entities and is a leading player in electronics and electrical engineering with sales aggregating about INR 12,000 crore. It operates in infrastructure, energy and healthcare segment, has 21 manufacturing plants and employs about 18,000 people.

Source - Economic Times

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