The financial year 2020-21 was marked by the onset of the second COVID-19 wave inIndia. The Government of India and various State Governments together with citizensresponded in a commendable manner to the unprecedented crisis. These concerted effortscontributed to the Indian economy remaining resilient in the face of disruptions in supplychain capacity utilization labor-related concerns and stress on the healthcareinfrastructure.
The International Monetary Fund (IMF) hailed the Government of India's efforts inhandling the pandemic including fiscal support support to vulnerable groups monetarypolicy easing liquidity provision and regulatory policies. The Indian economy remains oneof the high growth economies and has been steadily recovering from the impact of thepandemic that began in 2020. The accelerated vaccination efforts leading to a significantnumber of citizens being fully vaccinated is also contributing to the economic recovery.With an improvement in the economic scenario there has been an increase in investmentsacross various sectors of the economy and new opportunities are emerging. It howeverneeds to be emphasized that the core sectors and the SMEs need continuous capitalinvestments to drive consistent all-round economic growth. Only then would capacityutilization and investments in the manufacturing sector improve.
Despite the challenging conditions all businesses of the Company performed exceedinglywell with the Order Backlog at a record level. The Company's business structure is welloriented in meeting the needs of the industry in improving efficiency qualityflexibility and speed. With its wide-ranging portfolio market-oriented organizationstructure global technology leadership and strong local competence the Company is in agood position to partner with the country in sustainable growth.
Financial Performance - Highlights
For the financial year ended 30th September 2021 the Company received New Ordersvalued at Rs 142344 million a 32.4 percent increase over Rs 107517 million in thefinancial year ended 30th September 2020. The Order Backlog as of 30th September 2021stood at Rs 135198 million. Sales (excluding other operating revenues) were up by 33.1percent to Rs 127559 million compared to Rs 95808 million in the previous year.
Profits from Operations stood at Rs 12312 million compared to Rs 7399 million in theprevious year. For the year ended 30th September 2021 the Company's Profit before Taxstood at Rs 14306 million compared to Rs 10206 million in the previous year an increaseof 40.2 percent. The Profit after Tax for the year was Rs 10627 million increase by 40.3percent compared to Rs 7574 million in the previous year. The Board of Directors of theCompany has recommended a dividend of Rs 8/- per equity share of the face value of Rs 2/-each for the Financial Year ended 30th September 2021. The above financial performance isfor continuing operations.
Business Performance - Highlights
From an operational perspective the Company continued to focus on health and safety ofits people while maintaining business continuity meeting customer needs and profitablegrowth. In addition to introducing innovative solutions and digital technologies to themarket the Company also placed high emphasis on efficient working capital management.
Among the key highlights during the financial year 2021 the Company received an orderfrom India's largest shipbuilder Cochin Shipyard Limited to implement advanced marinesolutions for a fleet of boats equipped with electric propulsion and battery-integratedtechnology. The Company commissioned India's first high-voltage direct current linkfeaturing voltage-sourced converter (VSC) technology for Power Grid Corporation of IndiaLimited (POWERGRID). The Company has also partnered with POWERGRID to commission StaticSynchronous Compensator (STATCOM) solutions at POWERGRID's substations at BikanerFatehgarh and Bhadla. The STATCOM will be integrated with voltage-sourced converter (VSC)technology which offers high economical and technical flexibility through its modulardesign.
The Company signed a Memorandum of Understanding (MoU) with Switch Mobility AutomotiveLimited to jointly address need of electric commercial vehicle customers and executee-mobility projects. The MOU is aimed at delivering efficient cost-effective andsustainable e-mobility solutions to various commercial vehicle customers in India. TheCompany announced the successful deployment of Smart Metering Technology for over 200000Smart Meters in North Delhi together with and Tata Power Delhi Distribution Limited. Inthe mobility space the Company provided state-of-the-art automated train technologysystems aimed at improving capacity punctuality reliability and provide enhanced safetyfor passengers of Bengaluru Metro.
The Company further strengthened its manufacturing footprint in India with the openingof a medium voltage switchgear factory in Goa. The state-of-the art factory will producevacuum interrupters the centerpiece of medium-voltage switch-gear components.
I am also pleased to share that the Company closed the acquisition of C&S ElectricLimited during the financial year 2021. The acquisition is aimed at addressing the risingdemand for low-voltage power distribution in India and for some export markets. This willbolster the Company's portfolio not only in India but also for export to competitiveinternational markets in line with its growth strategy.
Adding another feather to its cap the Company has been empaneled by the IndianComputer Emergency Response Team (CERT-In) to offer information security auditing servicesto government organizations in addition to its existing cybersecurity enabled offerings.
The Company considers it as its economic environmental and social responsibility tofoster sustainable local development and add value to the local economy in which itoperates.
During the financial year 2021 Siemens India announced a contribution of Rs 200million towards its efforts against COVID-19 taking the total contribution over the pasttwo years to Rs 400 million.
The Company's response to the COVID-19 pandemic focused on strengthening the publichealth system and subsequently supporting the most vulnerable members of the society. Theinterventions range from providing government hospitals across the country with COVID-19testing lab state-of-the-art computer tomography scanner testing kits ventilatorsoxygen concentrators oxygen generators medical supplies and gear. The Company alsoprovided migrant and daily wage workers with dry rations and hygiene kits.
In the area of education the Company's scholarship program completed its ninth yearand so far has provided holistic development support to 935 engineering students from 93government engineering colleges across 26 States in India. Fifty percent of thesescholarships are offered to girls. The Company also together with the Federal Ministry forEconomic Cooperation and Development of the Federal Republic of Germany (BMZ) and DeutscheGesellschaft fur Internationale Zusammenarbeit (GIZ) GmbH with the support of Ministry ofSkill Development and Entrepreneurship Government of India (MSDE) launched technicaleducation initiative 'IGnITE'. 'IGnITE' aims at developing highly qualified techniciansbased on the German Dual Vocational Educational Training (DVET) model with a focus to makethem industry and future ready.
The Company signed two separate Memorandums of Understanding with Indian Institute ofScience (IISc) and Central Manufacturing Technology Institute (CMTI) respectively toestablish first-of-its-kind digital transformation labs. The labs are aimed at enhancingthe expertise of researchers at IISc as well as technical skills of professionals in theMachine Tool industry. The MoUs will focus on development of Industrial Internet of Thingsand Industry 4.0-enabled products and technologies. This initiative will encourageadoption of smart digital technologies by Micro Small & Medium Enterprises (MSMEs) ofthe manufacturing sector.
In the area of sustainable communities and environment the Company's Project Ashafocuses on villages in Palghar and Aurangabad through interventions in educationhealthcare sanitation water conservation energy livelihood and governance. The Projecthas helped provide potable water as well as water for irrigation in numerous villages inthe two districts. The project focused on watershed development ensuring the availabilityof drinking water and water for irrigation.
The Company placed utmost priority on the safety health and well-being of itsemployees. Some of the Company's initiatives are Fit4Life Health Break ProgrammePreventive Health Check-ups Yoga & Meditation Sessions Heath Webinars TelemedicineI Care etc. A cross-functional Siemens Taskforce was constantly reviewing the rapidlychanging situation to ensure that measures are always continuously implemented to keepemployees safe while also attempting to ensure business continuity.
The other focus areas included retention and development of talent and launchingvarious programs especially in the areas of digitalization. Many initiatives have beentaken by the Company to make it an employer of choice and a great place to work. Theongoing initiatives are centered around learning and development health managementenvironment protection health and safety.
The above measures are in addition to the Company's commitment to facilitatevaccinations for all employees and their families. In these difficult and exceptionalcircumstances the Company has taken concrete measures for well-being and is doingeverything possible to ensure that every employee feels safe and cared for.
Despite the challenges that India has faced over the years the nation has continued toremain one of the most resilient and attractive destinations for investment. Thegovernment's efforts on increasing public capital expenditure providing stimuluspackages introducing favorable reforms and policies are steps in the right direction.
The growth in Gross Domestic Product (GDP) manufacturing and services' PMI are veryencouraging signs for India and a boost to exports. Innovation and investment ininfrastructure is the key to scaling up manufacturing and growth. India's GDP is expectedto grow on the back of innovation globalization favorable demographics and reforms.Domestic demand and consumption will remain the country's strongest economic engine andIndia has an opportunity to catapult itself as a specialized manufacturing hub in selectsectors.
In a way the 'Atmanirbhar Bharat' initiative is tailor-made for the Company becauseit has all the verticals that support productivity in the manufacturing process. Be itMake in India Digital India Power for All Smart Cities etc. the Company's businessesare aligned to the Government of India's vision. As the public sector capital expenditurepicks up capital expenditure by the private sector will follow and these investments willbe smart green infrastructure electrification decarbonization technologies automationand digitization. All these are areas of the Company's core competence.
In fact the Company has begun to see heightened interest from customers to finddigitalization solutions to enable them to reduce their capital expenditure requirementssave cash and increase their productivity. As a focused technology company with a stronglocal footprint the Company is in a great position to enable greater productivity and bethe preferred choice for customers across all business segments. The Company is alsoseeing an increase in interest from customers in areas such as waste heat recovery liftirrigation power evacuation e-mobility decarbonization water management batterystorage and optimization - many of which also address the sustainability performance. Thestrategy has been focused on consistent long-term performance and sustainable valuegeneration. India has been one of the top-performing countries and the parent company'sManaging Board has been very supportive of its growth.
In conclusion I would like to wish good health and safety and sincerely thank ourcustomers the board the management unions and most importantly the dedicated employeesfor their consistent support and commitment to Siemens Limited during another challengingyear.