Engineering company Siemens posted an 18% rise in consolidated net profit for the year ended September 30, helped in large measure by the nearly 90% increase in the profitability of its energy segment.The company, part of the German-based engineering conglomerate Siemens AG, reported a net profit of Rs 705 crore.
Operating profit rose 16% to Rs 1,088 crore. Revenues, however, showed a 4% drop to Rs 9,286 crore. New orders during the year stood at Rs 10,090 crore compared to Rs 10,287 crore last year.Out of the company’s three verticals of energy, healthcare and industry, energy contributes 50% to its business. Order inflows in the segment grew 21%, while in healthcare they grew 20%. Industry was the worst-affected with new orders falling 17%.
Managing director Armin Bruck said though the situation was better in the last few months, pricing pressures would continue even in 2010. Asked what the capital outlay for the next months would be, he said, “We have in the last few years spent about Rs 200 crore per annum, except last year when we spent Rs 170 crore. We will continue to spend about the same.”
Chief financial officer Anil Mathur said though some projects had been renegotiated, none had been cancelled. “We did not take orders at any cost. Profitability was very important and we will continue to maintain the same strategy,” he said.Siemens is zero-debt and has Rs 4,040 crore cash .
The board of directors on Thursday approved the acquisition of the remaining 13.82% stake in its subsidiary Siemens Building Technologies for Rs 70 crore.
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