Siemens net slump 90% to Rs 29.9 cr in March qtr

Siemens Ltd, the flagship company of Siemens AG, today reported a 89.94% decline in net profit at Rs 29.9 crore for the second quarter ended March 31.

The company's net profit stood at Rs 297.5 crore in the year-ago period.

"The difference is primarily accounted for by a charge of Rs 90 crore in the quarter on account of revised estimates of revenue, costs and project-related provisions against a credit during the corresponding quarter of the previous year of Rs. 265.98 crore," the company said in a statement.

The company, which follows October-September financial year, reported a 27% decline in sales at Rs 2,907.7 crore during the quarter against Rs 3,988.2 crore last year.

During the quarter, Siemens bagged new orders worth Rs 2,814.1 crore, up 52% from Rs 1,849.2 crore in the same period last year, the release said.

"The results of the current quarter bear the impact of the prolonged slowdown in the economy. The significant improvement in new orders is positive. However, profits are under pressure due to continued delays by our customers in project completion leading to updates in project costs," company's Managing Director Armin Bruck said.

He said that the volatility in commodity and foreign exchange rates which, when marked to market, have also resulted in additional costs.

"The company is taking measures to realise synergies from the acquisitions made in the last couple of years and to increase its competitiveness in these challenging times," he added.

During the quarter, the company completed the amalgamation of Winergy Drive Systems India, the release said.