Siemens net profit rises 22% to Rs 614 cr in December 2024 ended quarter

India-listed Siemens Ltd reported a 22 per cent rise in its consolidated net profit (attributable to the owners of the company) in the October-December 2024 period, on the back of improved performance.

 

In its press statement, the company said its planned demerger of the energy business is on track. The company’s financial performance for the quarter under review has seen a dip in profits if gains from the energy business are excluded.

 

In the quarter under review, Siemens reported a consolidated net profit of Rs 614 crore, up 22 per cent from a year ago, even as revenue from operations fell 3 per cent to Rs 3,587 crore. The company also witnessed a dip in expenses in the same period.

 

 

Sequentially, Siemens’ consolidated net profit dipped 26 per cent, and revenue fell 20 per cent.

 

In May 2024, Siemens' board approved the proposal to demerge its energy business into a separate legal entity – Siemens Energy India Limited – to be subsequently listed and mirror the shareholding of Siemens Ltd. In the Wednesday press release, the company noted that the announced demerger is on track. Excluding the energy business, the company said its profit after tax was lower by 10 per cent at Rs 372 crore from a year ago.

 

Sunil Mathur, managing director and chief executive officer, Siemens Ltd, said, “Our Smart Infrastructure and Mobility businesses, which are largely linked to government spending in capex, continued to grow profitably. However, our revenue and, consequently, also our profit from operations for this quarter were impacted by a slowdown in short-cycle private sector capex spending and the normalisation of demand in our Digital Industries business.”

 

In terms of new order wins, Siemens said they were up 20 per cent to Rs 4,258 crore.

 

Mathur remains positive in his outlook and added, “With the announcements in the recent Union Budget, we expect a positive impact on our businesses from the government's continued emphasis on building world-class infrastructure, measures to boost consumption, and the increased focus on manufacturing.”

 

In its press statement, Siemens said its discontinued operations (energy business) continued to deliver strong profitable growth on the back of sustained strong demand for transmission products and solutions, including a favourable one-time impact of Rs 98 crore on profitability. Revenue and profit after tax for discontinued operations for Q1 FY25 stood at Rs 1,431 crore, up 28 per cent, and Rs 243 crore, up 158 per cent, respectively.