Siemens India in the black, posts Rs 35-cr profit
Siemens India
prithvi.siemens.co.in
Siemens Information Systems Ltd
sislindia.com
Our Bureau (BL)
MUMBAI, Nov. 12
SIEMENS Ltd has come out of the red. After making losses for the past two accounting periods, the company today reported a net profit of Rs. 35.12 crores for the year ended September 30, 1999, helped by lower interest charges and income from sale of assets.
The company had incurred a loss of Rs. 56.02 crores in the previous year. "The positive results are a reflection of the success of the restructuring strategy undertaken by the company," Mr. J. Schubert, Managing Director, Siemens Ltd, told newspersons here today.
According to him, the rise in earnings was a result of sound asset management, improvement in cost efficiencies, better productivity and volume improvement programmes.
Mr. Schubert, however, said that the task of restructuring the company was not yet over. "The journey is not over _ we are in the midst of it and have a long way to go. Our main goal henceforth is to stabilise our operations and increase the consistency of our performance," he added.
At the BSE today, the share price of Siemens Ltd rose to a high of Rs. 500 before closing at Rs. 475 _ marginally higher than Thursday's close of Rs. 471. Analysts said the results announced by the company were "above expectations".
For the year ended September 30, 1999, Siemens reported a rise of 5.5 per cent in turnover at Rs. 1,050.59 crores ($245 million) as against Rs. 995.93 crores in the corresponding period the previous year. Lease and other income increased to Rs. 64.18 crores (Rs. 52.52 crores). Total expenditure was higher at Rs. 1,023.52 crores (Rs. 968.07 crores).
Interest cost declined significantly to Rs. 27.82 crores (Rs. 46.60 crores). Depreciation was lower at Rs. 35.81 crores (Rs.47.28 crores). Income from exceptional items (sale of assets) was Rs. 10.48 crores as against a loss of Rs. 33.19 crores in the previous year. Tax adjustment was Rs. 2.98 crores (Rs. 9.34 crores).
Mr. Schubert said the company received new orders valued at Rs. 1,274 crores ($297 million) as compared to Rs. 838 crores, representing an overall increase of 52 per cent over the corresponding period last year. "This is a part reflection of enhanced customer focus through better portfolio management, backed with the slight improvement in the economy in the latter part of the fiscal," he added.
Mr. Schubert said the order book position as on date was Rs. 700 crores($163 million). Growth drivers for new orders were in the areas of Power Transmission and Distribution, Industrial projects, Railway Transportation Systems and Medical Engineering business.
The Standard products, comprising Switchgear and Motors as well as Automation and Drives, the Industrial projects and Power Transmissions and Distribution businesses dominated as the key volume contributors.
Mr. Schubert said the company would adopt a two-pronged approach in the coming years to further improve performance _ secure higher volumes and bring down costs further. The results of Siemens Information Systems Ltd, a joint venture between Siemens Ltd (74.8 per cent) and Siemens AG (25.2 per cent) was also announced today. For the year ended September 30, 1999, turnover increased to Rs. 164.2 crores ($39 million) as against Rs.133.46 crores recorded in the corresponding period last year _ a growth of 23 per cent. The net operating profit was Rs. 23.90 crores (Rs. 21.40 crores). New orders increased to Rs. 165.70 crores (Rs. 157 crores). |
