During the financial year 2020 the sudden outbreak of the COVID-19pandemic together with existing geo-political tensions impacted businesses and economiesacross the world. The business environment remained volatile and challenging particularlyimpacting manufacturing growth that slowed down across several sectors such as automobileenergy infrastructure agriculture travel and severely impacted the small and mediumscale enterprises as also government spending. Further the lockdown in April and May 2020impacted production activity and supply chains across the country and in many parts of theworld as well. The Company's performance was impacted mainly on account of a disruption inthe supply chain capacity under-utilization logistics-related issues as well as thechallenges related to migrant workers.
Despite the pressures from global market conditions India has over theyears continued to remain one of the most resilient and attractive destinations forinvestment and I am convinced that India's intrinsic growth potential remains intact eventhough it may have shifted on timelines due to the pandemic.
With Siemens' portfolio of Energy Mobility Digital Industries andSmart Infrastructure coupled with Siemens' leadership role in Digitalization across allthese businesses Siemens Limited continues to be well-positioned to meet the needs ofIndia.
Financial Performance from continuing operations - Highlights
For the financial year ended 30th September 2020 theCompany received New Orders valued at Rs 107517 million a 13.8 percent decrease over Rs124744 million in the financial year ended 30th September 2019. The OrderBacklog as of 30th September 2020 stood at Rs 123596 million. Sales (excludingOther operating revenues) were down by 24.3 percent to Rs 95808 million compared to Rs126487 million in the previous year.
Profits from Operations stood at Rs 7399 million compared to Rs 13135million in the previous year. For the year ended 30th September 2020 theCompany's Profit before Tax stood at Rs 10206 million compared to Rs 16963 million inthe previous year decrease of 39.8 percent. The Profit after Tax for the year was Rs7574 million decrease by 32.6 percent compared to Rs 11231 million in the previousyear.
The Board of Directors of the Company has recommended a dividend of Rs7/- per equity share of the face value of Rs 2/- each for the Financial Year ended 30thSeptember 2020.
Business Performance - Highlights
From an operational perspective the Company continued to focus onprofitable growth introducing innovative solutions to the market and enhancing itsdigitalization offerings across all its business segments.
Among the key highlights during the financial year the Company tookstrides towards finding solutions to the nation's energy challenges when it signed aMemorandum of Understanding with NTPC Limited and TERI. The MOU is aimed at identifyingevaluating and setting up reference use cases of hydrogen sector-coupling for variousupstream and downstream applications. The Company signed another MoU with TERI forcollaboration on technologies to support the energy transition in India includingsector-coupling. In addition the Company successfully implemented an efficient powersupply system with advanced passenger safety features for Kolkata Metro Rail CorporationLimited (KMRCL). The Central Park Depot of Kolkata Metro will also be equipped withadvanced Supervisory Control and Data Acquisition system (SCADA) and Operation ControlCentre supplied by the company contributing to a safe energy-efficient and comfortablerail commute. The 'Atal Tunnel' one of the world's longest and highest-altitude tunnelswhich was inaugurated by Honorable Prime Minister of India Shri Narendra Modi has alsobeen equipped with the Company's state-of-the-art automation technologies.
In a step to meet the increasing demand for electrification acrossindustry infrastructure and buildings in India the Company also signed an agreement toacquire New Delhi-based C&S Electric Limited. The acquisition has further received theregulatory approval of the Competition Commission of India. This will strengthen theCompany's portfolio not only in India but also for export to competitive internationalmarkets. In addition the Company's Board of Directors approved the sale of the MechanicalDrives business to Siemens AG which has subsequently announced its intention to sell thebusiness to Carlyle Group.
During the financial year 2020 the Company's digitalization portfoliosaw renewed interest from customers particularly in the Pharma Food and BeverageAutomotive and Power Distribution segments enabling increased productivity andflexibility. The Company also won an order from Lalitpur Power Generation Company Limited(LPGCL) a Bajaj Group company for advanced digital solutions for LPGCL's power plantlocated in Lalitpur Uttar Pradesh. The Company will provide a complete thermal twin forthe LPGCL coal-fired power plant enabling improvements in the plant's performance.
The Company also introduced digital solutions for resilient workplacesto adapt to the 'new normal'. This includes IoT solutions that support adherence to socialdistancing and contact tracing guidelines body temperature detection integrated withaccess control indoor air quality optimization and secured remote monitoring of abuilding's systems.
The Company has undertaken several sustainability initiatives toaddress issues of the environment foster sustainable local development while alsopromoting Skill Development in the country. These initiatives generally known asCorporate Social Responsibility (CSR) are referred to as Corporate Citizenship atSiemens. The Corporate Citizenship initiatives are in line with the Company's goal andfocus on: Education & Science Social and Environment.
The Company's response to the COVID-19 pandemic focused onstrengthening the public health system and subsequently supporting the most vulnerablemembers of the society.
In tough and uncertain times the company pledged a total contributionof Rs 20 crore towards fighting COVID-19. The interventions included set up of a COVID-19Testing Lab state-of-the-art Computed Tomography scanner for treatment of COVID-19patients 75000 units of COVID-19 testing kits (PCR tests and Antibody tests) 50ventilators to several government hospitals across India and 500000 surgical masks and100000 gloves to frontline health workers. The Company also supported 25000 migrant anddaily wage workers with dry rations and hygiene kits.
In the area of education the Company's scholarship program completedits eighth year and so far has provided holistic development support to 735 engineeringstudents from 77 government engineering colleges across 23 States of India. Fifty percentof these scholarships are offered to girls. The program received recognition within theSiemens world when it won the Werner von Siemens 2020 Award in the Siemens Matterscategory.
The Company also signed a Joint Declaration of Intent with the Ministryof Skill Development and Entrepreneurship Government of India (MSDE) Federal Ministryfor Economic Cooperation and Development of the Federal Republic of Germany (BMZ) tocreate framework conditions for high-quality training in India based on Dual VocationalEducation and Training (Dual VET). The Company is supporting long-term research &development through the concept of a Digital Transformation Lab at the Indian Institute ofScience (IISc) in Bengaluru. The new Lab has been fitted with a premium digital industrysoftware suite. The lab will support the skilling of graduate and research students of theinstitution.
In the area of sustainable communities and environment the Company'sProject Asha focuses on 72 villages in Palghar and Aurangabad through interventions ineducation healthcare sanitation water conservation energy livelihood and governance.The Project has helped provide potable water as well as water for irrigation in numerousvillages - over 150 million liters of rainwater have been harvested and over 1100 acresof arable land brought under irrigation in the two districts. The project focused onwatershed development ensuring the availability of drinking water and water forirrigation. Earlier the community relied on Paddy and Ragi crops which was for mereconsumption purposes. With the availability of water vegetable cultivation in the Kharifseason has been introduced. This year the main efforts have concentrated aroundlivelihood.
The Company placed utmost priority on the safety health and well-beingof its employees. A cross-functional Siemens Taskforce was constantly reviewing therapidly changing situation to ensure that measures are always continuously implemented tokeep employees safe during the pandemic period while also attempting to ensure businesscontinuity.
Regular Townhalls and 'pulse checks' were conducted to engage withemployees monitor stress levels gather feedback on various initiatives and supportemployees to maintain a work-life balance. A team of medical experts from the Company wereavailable to provide preventive healthcare support and also to support employees whoneeded medical care. The Company is also extremely proud of its project and serviceengineers who worked under very difficult conditions to ensure that critical facilities inhospitals diagnostic centers and essential infrastructure & services continue tofunction & remain operational.
In addition to the above the Company lays great stress on ensuring aZero Harm Culture for each one of its employees as well as all employees working on acontractual basis. During the year several measures were introduced to ensure the healthand safety at all offices factories and project sites.
Many initiatives have been taken by the Company to make it an employerof choice and a great place to work. The ongoing initiatives are centered aroundcompetency building career development and creating an environment of empowerment andtrust.
While there are unprecedented challenges that have risen due to thepandemic green-shoots and demand revival in various sectors are now visible. Thegovernment's stimulus packages efforts to introduce favorable reforms and policies aresteps in the right direction. These are very encouraging signs for the manufacturingsector and a boost to exports. It is imperative that domestic demand picks up for economicgrowth to sustain which will require government investments in infrastructure and largeprojects.
India's GDP is expected to revive on the back of digitizationglobalization favorable demographics and reforms. The Company is fully aligned tosupport the 'Atmanirbhar Bharat' program announced by the Honorable Prime Minister withits offerings to support the various initiatives of Make in India Digital India Powerfor All Smart Cities Modernization of the Railways etc.
The Company has also witnessed heightened interest from customers forDigitalization solutions to enable them to reduce their Capex requirements save cash andincrease their productivity. Being a global leader in Automation and Digitalizationcoupled with a strong local footprint the Company is in an advantageous position toenable greater productivity and be the preferred choice for customers across all businesssegments.
In conclusion I would like to wish good health and safety andsincerely thank our customers the board the management unions and most importantly thededicated employees for their consistent support and commitment to Siemens Limited duringanother challenging year.