Siemens on Tuesday reported over 37 per cent decline in its net profit to Rs 408 crore in March quarter, compared to the same period year ago, mainly due to under-absorption of fixed costs and higher material costs in the Digital Industries business.
Photograph: Evgenia Novozhenina/Reuters
The company follows an October to September fiscal year.
Its net profit stood at Rs 649 crore for the quarter ended on March 31, 2024, a company statement said.
The decline in profit from operations was due to under-absorption of fixed costs and higher material costs in the Digital Industries business, according to the statement.
Additionally, it explained that the profit was impacted by an extraordinary gain of Rs 192 crore from the sale of property in Q2 FY 2024 and demerger expenses of Rs 63 crore in the current quarter.
Revenue remained flat due to the ongoing normalisation of demand in Digital Industries and due to normal project delivery schedules in the Mobility business.
Revenues from operation stood at Rs 4,259 in the March quarter as against Rs 4,152 crore in the same period a year ago.
New orders rose 44 per cent to Rs 5,305 crore in the quarter from Rs 3,697 crore in the same period a year ago.
Sunil Mathur, Managing Director and Chief Executive Officer, Siemens Ltd, said, “In spite of the challenging macro environment, our order Income grew by 44 per cent driven by our Mobility and Smart Infrastructure businesses where we see continued public Capex spending on infrastructure.
“Our short-cycle Digital Industries business, however, continues to be impacted by muted private Capex spending.”
“Allowing for extraordinary expenses, our underlying profitability reflects our ambition towards profitable growth,” he added.
As private Capex picks up locally and globally, the demand for automation and digitalisation solutions will also increase, as technology has proven to be key to sustainable growth for industry and infrastructure, he stated.
Siemens Limited is a leading technology company focused on industry, infrastructure and mobility.
