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While base business grew appreciably, the sharp rise in the exports and commencement of realization of revenues from the execution of mega projects positively impacted the top-line growth.
Sales Turnover of Siemens Ltd. increased sharply by 71% and stood at Rs. 77,268 million (Rs. 7,727 crore) for the year ended September 30, 2007 as compared to Rs. 45,103 million (Rs. 4,510 crore) in the corresponding period of the previous year. While all the businesses contributed to the growth, the key drivers were Power, Automation & Drives and Industrial Solutions and Services businesses. For the fourth quarter, Sales Turnover increased by 47% to Rs. 21,885 million (Rs. 2,189 crore), compared to Rs. 14,920 million (Rs. 1,492 crore) during the same period of the previous fiscal.
Siemens Ltd. received New Orders valued at Rs. 101,070 million (Rs. 10,107 crore) for the 12 months ended September 30, 2007, compared to Rs. 82,025 million (Rs. 8,203 crore) in the corresponding period of the previous year, registering a rise of 23%. The major contributor and volume driver was the Power business. For the quarter ended September 30, 2007, New Orders intake was Rs. 12,782 million (Rs 1,278 crore).
For the year ended September 30, 2007, the Company posted an excellent performance with Profit Before Tax of Rs. 8,742 million (Rs. 874 crore) increasing by 73% over the previous year’s Rs. 5,055 million (Rs. 501 crore). For the fourth quarter ended September 30, 2007, Profit Before Tax increased by 135% to Rs. 4,399 million (Rs. 440 crore) against Rs. 1,875 million (Rs. 188 crore) in the last quarter of FY 06. The higher revenue realizations contributed to a healthy corresponding result that was supported by higher productivity and the appreciating Rupee.
In the fourth quarter, a net exchange adjustment of Rs. 1,285 million relating to earlier quarters was made, which had a positive impact on the result of the power segment.
The Profit After Tax stood at Rs. 5,965 million (Rs 597 crore) compared to Rs 3,601 million (Rs. 360 crore) in the previous year, registering a rise of 66%. While for the last quarter of fiscal 2006-07, Profit After Tax was Rs. 3,086 million (Rs.309 crore), registering a healthy rise of 126% compared to Rs. 1,368 million (Rs 137 crore) in the corresponding period of the previous year.
The Unexecuted Order Value as of September 30, 2007 stood at Rs. 94,074 million (Rs. 9,407 crore), a rise of 25%. (September 30, 2006: Rs 75,258 million (Rs 7,526crore))
Capital and Financial Investments for Siemens Ltd. amounted to Rs. 3,863 million (Rs. 386 crore) for 2006-07. As on 30th September, 2007, Siemens Ltd. had 6,505 Employees as against 5,971 on the corresponding date in the previous year.
The Board of Directors have recommended a dividend of Rs. 4.80 (240%) for an equity share of Rs. 2/- each for the financial year ended September 2007. During the previous fiscal, the Company had paid a dividend of Rs 3.80 (190%), for an equity share of Rs. 2/- each. The Board has also recommended issue of Bonus Shares in the ratio of 1:1 (one Bonus Share for every Share held), subject to statutory and regulatory approvals, including of shareholders.
For fiscal 2006-07, the consolidated results of Siemens Ltd. Group includes that of Siemens Ltd., Siemens Information Systems Ltd. (SISL), Siemens Information Processing Services Pvt. Ltd. (SIPS), Siemens Industrial Turbomachinery Services Pvt. Ltd. (SITS), and Siemens Public Communication Networks Ltd. (for six months ended March 2007) and Siemens Building Technologies Pvt. Ltd. (for four month period ended September 2007).
The Sales Turnover for Siemens Ltd. Group in fiscal 2006-07 rose to Rs. 93,786 million (Rs 9,379 crore), an increase of 55% over the previous fiscal (2006: Rs. 60,323 million), while New Order value increased to Rs 115,703 million, a rise of 14% (2006: Rs. 101,600 million). The Profit Before Tax stood at Rs. 9,869 million (Rs 987 crore), an increase of 69% over Rs 5,835 million (Rs 583 crore) in the previous fiscal. The Profit After Tax was Rs. 6,929 million (Rs 693 crore), as compared to Rs. 3,917 million (Rs. 392 crore), a rise of 77%.
Addressing the annual press conference, Mr. J. Schubert, Managing Director, Siemens Ltd. said, “The last fiscal has been a successful year for us as we had a strong growth in our base business, coupled with successes in bagging mega orders. Our exports rose to over 30% of our business. Our focus on penetrating into newer market segments and geographies with the support of partners has enabled us to capture higher market shares and consolidate our position.”
Speaking on the profitability, he added, “The larger projects brought in a substantially higher absolute volume of profits which could be ploughed back to finance our capital and financial investments internally.”
He further added,”We systematically focused on increasing the local value added structure and enhanced our factory capacities to support growth. Three new factories are in the ramp-up phase and the investments are yet to start paying back. In addition to the capacity expansion, we also made investments for strengthening our portfolio, which led to the acquisition of a majority stake in iMetrex Technologies.” Commenting on Siemens completing 50 years of its incorporation in India, Mr. Schubert added, “This year was also a landmark year for us with completion of 50 years of incorporation in India. In these years, we have established our credentials and are today a leading and respectable player in the market.”
Announcing the Company’s plans for the future, Mr. Schubert said, “Going forward, we see a huge potential for growth in the booming Indian economy, specially in areas of infrastructure. We will continue to strengthen our focus in the domestic as well as the export market. To support this, we will continue to enhance the local value added structure by developing products specifically for the domestic and emerging markets. With our proven competencies in manufacturing, R&D and software services, we have emerged as a focus country in Siemens’ global strategy for growth with expectations of doubling our turnover in the next 3 years. With the excellent management team, I am confident that we can achieve the goal.”
Siemens Ltd is the flagship listed company in India. Siemens in India, which comprises of 19 legal entities, is a leading provider of industry and infrastructure solutions with a business volume aggregating about Rs 11,000 crores. It operates in the core business segments of Energy, Industry Transportation, Healthcare, Information Technology, Communication and Lighting. It has nation-wide Sales and Service network, 18 manufacturing plants, some 500 strong network of channel partners and employs over 18,000 people.