Siemens' net profit dips 2.6% to Rs 321 crore in September quarter

Siemens said its consolidated net profit dipped 2.6% to Rs 321.6 crore in the September 2021 quarter, mainly due to a rise in raw material and logistics costs

Siemens on Wednesday said its consolidated net profit dipped 2.6 per cent to Rs 321.6 crore in the September 2021 quarter, mainly due to a rise in raw material and logistics costs.

Its consolidated net profit had stood at Rs 330.2 crore in the quarter ended on September 30, 2020, according to a BSE filing.

In a statement, the company said, "Profit after tax from continuing operations decreased by three per cent to Rs 323 crore, compared with Rs 333 crore for the corresponding quarter of the previous year, on account of an increase in raw material and logistics costs."

It reported an increase of 4.9 per cent in new orders from continuing operations at Rs 3,378 crore in the September 2021 quarter, against Rs 3,220 crore in the corresponding period last year. The company's order backlog stands at an all-time high of Rs 13,520 crore.

For the financial year 2020-21, Siemens reported an increase of 32.4 per cent in new orders, 33.1 per cent in revenue, and 40.3 per cent in profit after tax from continuing operations over the previous financial year.

Siemens Managing Director and CEO Sunil Mathur said in the statement, "We are delighted with the overall performance of the company. Our businesses have performed well under challenging conditions. We are now at pre-COVID-19 volume levels with a record order backlog."

He added that as the government investment in infrastructure continues and capacity utilisation levels increase, "we believe tendering for private sector capex (capital expenditure) will pick up in the months ahead. This will provide further impetus to our continued strategy of profitable growth".

Its total revenue rose to Rs 4,358.3 crore in the quarter, from Rs 3,609.3 crore a year ago.

The company follows the October-September financial year cycle.

The consolidated net profit in the year ended September 30, 2021, stood at Rs 1,090.4 crore, compared with Rs 768.6 crore in 2020 (ended on September 30, 2020).

Its board of directors at its meeting held on November 24 this year has recommended a dividend of Rs 8 per equity share of Rs 2 each for the financial year 2020-21.

The dividend, as recommended by the board of directors, if declared, at the forthcoming annual general meeting of the company will be paid from February 8, 2022.

The board, on the recommendation of the nomination of the remuneration committee, has approved the appointment of Willem Rudolf Sasson as the director (non-executive non-independent director), with effect from the 64th AGM, subject to the approval of the members, it stated.

Sasson is not related to any director of the company. "We affirm that Sasson is not debarred from holding the office of Director by virtue of any order of the Securities and Exchange Board of India or any other such authority," it added.