Siemens slips after Q4 results

Siemens fell 0.73% to Rs 1568.20 after the company announced its earning for for the year ended 30 September 2019.

On a consolidated basis, Siemens reported 18.3% increase in net profit to Rs 333.90 crore on a 5.7% rise in net sales to Rs 4037 crore in Q4 September 2019 over Q4 September 2018. The result was announced post trading hours yesterday, 19 November 2019.

The group has opted for lower corporate tax rate available under section 115BAA of the Income-tax Act, 1961, as introduced by Taxation Laws (Amendment) Ordinance, 2019. Accordingly, current tax for the quarter ended 30 September 2019 includes a credit of Rs 48.80 crore relating to the quarter ended 30 June 2019 on account of revision in tax rate. Further, the group has also re-measured its deferred tax assets and a charge of Rs 74.50 crore has been provided for the quarter and year ended 30 September 2019.

The company's total new orders for the fourth quarter stood at Rs 3,189 crore while total new orders for the financial year 2019 were Rs 13,238 crore. The order backlog as of 30 September 2019 stood at Rs 11,879 crore or a reach of approximately one year.

The company witnessed steady performance across most businesses with growth in order income by 7% in gas & power, 7% in smart infrastructure and 11% in digital industries.

In the year ended September 2019, the company reported an increase of 18% in profit before tax at Rs 1,642 crore compared to Rs 1,391 crore in the previous year. The profit after tax increased 21.6% to Rs 1,087 crore compared to Rs 894 crore in the previous year. Revenue increased 8.4% to Rs 13,323 crore compared to Rs 12,293 crore in the previous financial year.

Sunil Mathur, managing director and chief executive officer, Siemens, said, "Based on our visibility, we see muted capex spending in the next couple of quarters by both public and private sectors. Our digitalization initiatives however continue to gain traction across all market verticals and we are experiencing increased interest by our customers in our integrated digital solutions."

Siemens focuses on the areas of power generation and distribution, intelligent infrastructure for buildings and distributed energy systems, and automation and digitalization in the process and manufacturing industries. It is also a leading supplier of smart mobility solutions for rail and road transport and infrastructure solutions for Smart Cities.

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