The Hindu Business Line : Siemens Q4 net rises 31% on higher net sales

In growth mode
The company's net profit for the fiscal, at Rs 360 crore, rose by 41 per cent from a year ago (Rs 255 crore); while net sales grew 64 per cent, to Rs 4,510 crore (Rs 2,749 crore).

Mumbai , Nov. 23

Siemens Ltd reported a 31 per cent increase in net profit for the fourth quarter ended September 30, 2006, aided by a 60 per cent increase in net sales.

The key drivers of growth were the power, automation & drives and industrial solutions businesses of the company, said a statement from Siemens.

Net profit was reported at Rs 136.7 crore, up from Rs 104.5 crore in the corresponding year-ago quarter.

Net sales amounted to Rs 1,492 crore, up from Rs 933 crore. The company's net profit for the fiscal, at Rs 360 crore, rose by 41 per cent from a year ago (Rs 255 crore); while net sales grew 64 per cent, to Rs 4,510 crore (Rs 2,749 crore). Total expenditure also grew by as much, (around 64 per cent) to Rs 4,136 crore (Rs 2,514 crore).

Profit before interest and depreciation grew 38.3 per cent, to Rs 513 crore (Rs 371 crore). Margins were under pressure partly because of increased raw material prices and party due to other reasons, said Mr Juergen Schubert, Managing Director, Siemens Ltd.

New orders, at Rs 8,202 crore for the year ended September 30, 2006, registered a 99 per cent rise from a year ago. Unexecuted order value stood at Rs 7,526 crore, higher by 97 per cent.

Cash from operations stood at Rs 943 crore as compared to Rs 347 crore from a year ago. "This gives us the flexibility to look at inorganic growth opportunities as and when they arise," said Mr Patrick de Royer, Executive Director & CFO, Siemens Ltd.

Going ahead, the company sees tremendous potential in complete infrastructure solutions for megacities, customised solutions for industries in market clusters such as oil & gas, or airports; and specific products and solutions for the smaller entrepreneurs.

Power constitutes 31 per cent of the company's business while `industry' contributes 27 per cent, currently. In business volumes, the power segment grew 255 per cent the last fiscal.

Going ahead, the stress would be on increasing factory capacities and higher market penetration, said Mr Schubert.

The consolidated net profit for Siemens group rose by 27 per cent, to Rs 391 crore, while turnover rose 66 per cent, to Rs 6,032 crore.

More Stories on : Financial Performance | Electrical Goods | New Business | Siemens Ltd

Article E-Mail :: Comment :: Syndication :: Printer Friendly Page