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Net Profit After Tax remained steady at Rs. 5,933 million (Rs. 593 crore) mainly due to additional cost impacts in certain large projects. However, the base business of the Company grew exceptionally well. On a comparable basis, Sales rose by 21%, Orders increased by 27% and Profits from operations rose by 68% during the current fiscal.
Sales Turnover of Siemens Ltd. increased by 7% and stood at Rs. 82,955 million (Rs. 8,296 crore), for the year ended September 30, 2008 as compared to Rs. 77,268 million (Rs. 7,727 crore) in the corresponding period of the previous year. The key drivers were Power, Industrial Solutions & Services and Automation & Drives businesses. For the fourth quarter, Sales Turnover increased by 11% to Rs. 24,216 million (Rs 2,422 crore) as compared to Rs. 21,885 million (Rs. 2,189 crore) during the same period of the previous fiscal.
Siemens Ltd. received New Orders valued at Rs. 87,182 million (Rs. 8,718 crore) for the 12 months ended September 30, 2008, compared to Rs. 101,085 million (Rs. 10,109 crore) in the corresponding period of the previous year, registering a drop of 14%. After adjusting the mega order impacts in the comparative fiscals, the Orders rose by 27%. For the quarter ended September 30, 2008, New Orders rose sharply by 86% and stood at Rs. 23,851 million (Rs 2,385 crore) as compared to Rs 12,797 million (Rs. 1,280 crore).
For the year ended September 30, 2008, the Company’s Profit Before Tax stood at Rs. 8,918 million (Rs. 892 crore) as compared to Rs 8,742 million (Rs 874 crore) in the previous year, registering an increase of 2%. For the fourth quarter ended September 30, 2008, Profit Before Tax stood at Rs 3,437 million (Rs 344 crore), a drop of 21% as compared to Rs. 4,399 million (Rs. 440 crore) in the last quarter of FY 07.
The Profit After Tax remained steady and stood at Rs 5,933 million (Rs 593 crore) as compared to Rs. 5,965 million (Rs 597 crore) in the previous year. While for the last quarter of fiscal 2007-08, Profit After Tax was Rs 2,252 million (Rs 225 crore) as compared to Rs. 3,086 million (Rs.309 crore) in the corresponding period of the previous year, registering a dip of 27%.
The Unexecuted Order Value as of September 30, 2008 stood at Rs 98,338 million (Rs 9,834 crore), a rise of 5%. (September 30, 2007: Rs. 94,074 million (Rs. 9,407 crore)).
Capital and Financial Investments for Siemens Ltd. amounted to Rs. 2,197 million (Rs. 220 crore) for 2007-08. As on 30th September, 2008, Siemens Ltd. had 6,502 Employees as against 6,505 on the corresponding date in the previous year.
The Board of Directors have recommended a dividend of Rs. 3/- (150 %) for an equity share of Rs. 2/- each for the financial year ended September 2008. During the previous fiscal, the Company had paid a dividend of Rs 4.80 (240%), for an equity share of Rs. 2/- each.
For fiscal 2007-08, the consolidated results of Siemens Ltd. Group includes that of Siemens Ltd., Siemens Building Technologies Pvt. Ltd., Siemens Information Systems Ltd. (SISL) and Siemens Information Processing Services Pvt. Ltd. (SIPS).
The Sales Turnover for Siemens Ltd. Group in fiscal 2007-08 rose to Rs. 96,798 million (Rs 9,679 crore), an increase of 3% over the previous fiscal (2007: Rs. 93,786 million), while New Order value stood at Rs 101,803 million (2007: Rs. 115,703 million). The Profit Before Tax stood at Rs. 9,422 million (Rs 942 crore), a decline of 4% over Rs 9,869 million (Rs 986 crore) in the previous fiscal. The Profit After Tax was Rs. 5,995 million (Rs 600 crore), as compared to Rs. 6,929 million (Rs. 693 crore), a drop of 13%.
Addressing the annual press conference, Dr Armin Bruck, Managing Director, Siemens Ltd. said, “We have seen satisfactory performance during the year and our base business has grown strongly. We focused on quality of our results and have secured healthy order book and not just volumes.” He further added, “We focused on key growth areas in the domestic as well as export market and enhanced our product portfolio & factory capacities to support our growth.”
Speaking on the profitability, Dr Bruck added, “The impact on the profitability was due to the provisions booked to cover the costs overrun on certain large projects. As a matter of good accounting principles, we had to take respective accruals in our books, which of course heavily impacted the bottom line as well as top line due to accounting adjustments.”
Commenting on the Company’s future plans, Dr Bruck said, “The Indian economy has seen phenomenal growth for the past few years and it is only natural for the economy and markets to go through a phase of correction. We believe that it is just a transient phase and we are optimistic that the economy will gain momentum again on the basis of its inherent strengths. We have geared ourselves for the period ahead by streamlining our businesses and processes, which will support our growth targets. We will continue to grow in the domestic and the export markets. Further, Siemens in India will be leveraged for regional and global markets as a sourcing base of products and services including R&D.”
Siemens Ltd is the flagship listed company in India. Siemens in India, which comprises 19 legal entities, is a leading provider of industry and infrastructure solutions with a business volume aggregating about Rs 11,800 crore. It operates in the core business areas of Industry, Energy and Healthcare. It has nation-wide Sales and Service network, 18 manufacturing plants, a network of around 500 channel partners and employs about 17,000 people.