Siemens, the flagship company of the Siemens Group in India, has posted a net profit of Rs 1.6 crore for the second quarter ended March 31, 2008, down 98.5 per cent, compared with the Rs 108 crore in the corresponding previous quarter, mainly due to provisioning of Rs 109.8 crore for estimated losses on certain large projects and discontinued operations of three businesses.

<tr><td><p class='TableClas'></p><P class='TableClas'><DIV CLASS=rightDiv><script language="JavaScript">
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		<script type="text/javascript" src="http://pagead2.googlesyndication.com/pagead/show_ads.js">
		</script> </DIV><p class='TableClas'>Total income for the quarter was flat (up 0.71 per cent) at Rs 2,156 crore compared with the Rs 2,140.8 crore posted in the corresponding previous quarter, as per the unaudited results.
</p><p class='TableClas'>Siemens officials said the results were not comparable with the previous year due to transfer of enterprise communication and building technologies business into separate entities, as well as automotive business which was sold under a global arrangement. 
</p><p class='TableClas'>Additionally, in the current quarter, the company has made a reversal in turnover as a consequence of a revised cost estimate as per the percentage of completion (POC) accounting. 
</p><p class='TableClas'>"This quarter, our profitability has taken a one-time hit mainly due to a provision that we have made for anticipated losses on certain projects. However, we have already charted out corrective measures for better risk management in future," said Armin Bruck, managing director, Siemens.
</p><p class='TableClas'>The company

Siemens Q2 net nosedives on provisioning

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