During the financial year 2018-19 the global macro-economic and geo-politicalsituation remained volatile and uncertain. The Indian markets mirrored the globalscenario with the business environment remaining challenging particularly impactingmanufacturing growth that slowed down across several sectors. The situation wasaccentuated by concerns on liquidity conditions and the risk averseness that prevailedamongst lending institutions. This in turn had spillover effects into other sectors of theeconomy.
In spite of pressures from global market conditions India has over the years continuedto remain one of the fastest growing major economies. It however needs to be emphasizedthat sectors such as power infrastructure transportation steel and cement are in needof continuous capital investments to drive consistent all-round economic growth. Onlythen would capacity utilization and investments in the manufacturing sector improve.Despite these challenges Siemens Limited performed well across businesses deliveringstrong order growth. With its wide ranged portfolio market-oriented organizationstructure global technology leadership and a strong local competence the Company is in agood position to partner the country in sustainable growth.
Financial Performance Highlights
For the financial year ended 30th September 2019 the Company received NewOrders valued at Rs. 132377 million a 3.9 percent increase over Rs. 127404 million inthe financial year ended 30th September 2018. The Order Backlog as of 30thSeptember 2019 stood at Rs. 118795 million. Sales were up by 8.4 percent to Rs. 133231million compared to Rs. 122927 million in the previous year.
Profits from Operations stood at Rs. 12584 million compared to Rs. 11194 million inthe previous year.
For the year ended 30th September 2019 the Company's Profit before Taxstood at Rs. 16416 million compared to Rs. 13912 million in the previous year anincrease of 18 per cent. The Profit after Tax for the year was Rs. 10869 millionincrease by 21.6 percent compared to Rs. 8939 million in the previous year.
The Board of Directors of the Company has recommended a dividend of Rs. 7/- per equityshare of face value of Rs. 2/- each for the Financial Year ended 30th September2019.
Business Performance Highlights
From an operational perspective the Company continued to focus on profitable growthintroducing innovative solutions to the market and efficient working capital management.
Among the key highlights during the financial year the Company was awarded an order toupgrade India's oldest HVDC link from Power Grid Corporation of India. The Companylaunched the Digital Experience and Application Center (DEX) a full-fledged testingsimulation and training center for the machine tool industry. The Company's Vadodarafactory achieved a key milestone during the year when it rolled out the 1000thsteam turbine. It also built the 9000 HP propulsion system to boost Indian Railways'electrification and haulage capabilities which was entirely designed built andmanufactured in India. The Company also got an order to upgrade and modernize HindustanZinc Limited's Power Asset Fleet with state-of-the-art technology.
Continued focus on Digitalization
The Company continued its commitment to generate sustainable value for its customers byleveraging technology solutions. In the financial year 2018-19 the Company expanded itsset of digitalization reference projects. It now has over 100 reference cases deliveredfor over 50 customers across market segments. Many of these projects have broughtsubstantial value to Siemens' customers in the form of productivity improvementperformance monitoring process optimization remote monitoring energy efficiency gridstability remote diagnostics and process analytics.
It installed a state-of-the-art Remote Diagnostic Services (RDS) for GAIL (India)Limited covering 29 gas turbines across multiple locations in India. Real-time dataanalysis from these gas turbines helps the customer increase availability reduce forcedoutages and enable proactive predictive maintenance.
Digital solutions for a global automotive original equipment manufacturer contributedto reduction of costs and enhancing productivity. With India's automotive industrycompeting in the global market such companies need to transition to Industry 4.0 toreduce production costs minimize defects boost efficiency and shorten time to market fornew products.
During the financial year 2018-19 the Company also launched a new MindSphereApplication Center a state-of-the-art digitalized technology center supported bySiemens' MindSphere an open cloud-based IoT operating system that lets customers connectmachines and physical infrastructure to the digital world and its thermodynamic digitaltwin. The MindSphere Application Center launched in Gurgaon is the first in the worldspecifically aimed at digital solutions for coal and steam-based power plants.
The Company is committed to acting responsibly to achieve economic environmental andsocial progress. It has been transforming communities across India through CorporateCitizenship initiatives through access to technology access to education and sustainingcommunities. During the financial year 2018-19 the Company continued with itscontribution to society and the environment through various initiatives.
In the area of education the Company's scholarship program completed its seventh yearand so far has provided holistic development support to 585 engineering students from 65government engineering colleges across 23 States of India. Fifty percent of thesescholarships are offered to girls. The Company also signed Memorandums of Understandingwith two State governments West Bengal and Gujarat for propagation of DualVocational Education & Training (VET) in Government Industrial Training Institutes(ITIs). The program so far has positively impacted 87 ITIs and over 5500 trainees. TheCompany's STEM Project (to promote curiosity-based learning in Science TechnologyEngineering and Mathematics) has been scaled up during the year it now involvesover 20000 students in 75 schools across the country.
In the area of sustainable communities and environment the Company's Project Ashafocuses on 72 villages in Palghar and Aurangabad through interventions in educationhealthcare sanitation water conservation energy livelihood and governance. Twenty-fiveof these villages were added in the financial year 2018-19. The Project has helped providepotable water as well as water for irrigation in numerous villages over 150 millionliters of rainwater has been harvested and over 1100 acres of arable land brought underirrigation in the two districts.
During the financial year the company continued its focus on retention and developmentof talent launching various programs specially in the areas of digitalization. Manyinitiatives have been taken by the Company to make it an employer of choice and a greatplace to work. The initiatives which are ongoing are centered around learning anddevelopment health management environment protection health and safety.
While there are challenges in any business environment India's overall macrofundamentals continue to remain stable. The government's efforts to introduce favorablereforms and policies have resulted in improved rankings on the ease of doing business.India also improved its ranking in the global innovation index which is a positiveconsidering the role technology will play in improving India's economy. However it isimperative that domestic demand picks up for economic growth to sustain which willrequire government investments in infrastructure and large projects. India has to continueworking on improving the ease of doing business and ensure a fair and stable businessenvironment.
The Company has technology solutions and competence which support and cater to thevisionary programs of the government such as Make in India Digital India Power for Alland Smart Cities. The Company will endeavor to increase its focus on providing digitalsolutions to enable greater productivity and be the preferred choice for customers acrossall segments of our business. The Company has taken measures to increase itscompetitiveness and strengthen its capabilities and offerings. The strategy has beenfocused on prudence profitable growth and operational excellence. India has been one ofthe top performing countries and the parent company's Managing Board has been verysupportive towards its growth.
In conclusion I would sincerely thank our customers the board the management unionsand most importantly the dedicated employees for their consistent support and commitmentto Siemens Limited during another challenging year.