Siemens tumbles after weak Q2 outcome

The result was announced during trading hours today, 26 April 2013.

Meanwhile, the BSE Sensex was down 131.97 points, or 0.68%, to 19,274.88.

On BSE, 2.75 lakh shares were traded in the counter as against an average daily volume of 44,899 shares in the past one quarter.

The stock hit a high of Rs 520 and a low of Rs 476.40 so far during the day. The stock had hit a 52-week high of Rs 799.45 on 27 April 2012. The stock had hit a 52-week low of Rs 467 on 9 April 2013.

The stock had underperformed the market over the past one month till 25 April 2013, sliding 5.93% compared with the Sensex's 3.88% rise. The scrip had also underperformed the market in past one quarter, falling 18.59% as against Sensex's 3.47% fall.

The large-cap company has an equity capital of Rs 71.10 crore. Face value per share is Rs 2.

Siemens said new orders jumped 52% to Rs 2814.10 crore in Q2 March 2013, from Rs 1849.20 crore in Q2 March 2012.

Profit after tax for Q2 March 2013 was Rs 29.90 crore as against Rs 297.50 crore in Q2 March 2012. The difference was 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 as against a credit during the corresponding quarter of the previous year of Rs 265.98 crore.

Dr Armin Bruck, managing director, Siemens 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. Further, the volatility in commodity and foreign exchange rates which, when marked to market, have also resulted in additional costs. The company is continuing its measures to realise synergies from the acquisitions made in the last couple of years to optimise further its cost position to increase its competitiveness in these challenging times."

Among the highlights of the second quarter, Siemens IC Sector won an order worth over Rs 350 crore to supply traction motors for Diesel Locomotive Works, Siemens Energy Sector won Rs 100 crore order from BSRM (the highest private sector-funded GIS project in Bangladesh) and Siemens Industry Sector won a significant order worth Rs 97 crore from Surana Industries for its pelletization plan. Siemens Healthcare Sector installed India's firth simultaneous PET-MRI at Indraprastha Apollo Hospital's PET Suite, which features PET-MRI and ultra HD PET-CT under one roof.

During Q2 March 2013, the company completed the amalgamation of Winergy Drive Systems India.

Siemens is a leading powerhouse in electronics and electrical engineering. Siemens AG holds 74.96% stake in Siemens (as on 31 March 2013).

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