Siemens campus. Photo: Wikipedia

Siemens Sept quarter profit slips 5% to Rs 333 cr on higher expenses

Technology major on Wednesday reported 4.7 per cent fall in net profit at Rs 333 crore for September quarter mainly on higher expenses due to lockdown.

“The Net Profit after Tax from continuing operations decreased by 4.7 per cent to Rs 333 crore, compared to the same period of previous year,” a company statement said.

Revenue from continuing operations fell 9.2 per cent to Rs 3,422 crore over the corresponding quarter of the previous year.

The company follows October-September financial year.

During the quarter, new orders from continuing operations grew 8.7 per cent at Rs 3,220 crore as compared to the year-ago period, it added.

The company has a strong order backlog of over one year’s revenue, partially on account of the period of lockdown in the country, which resulted in reduced revenues.

The profit was impacted due to expenses incurred during the lockdown period amounting to Rs 285 crore, it explained.

At its board meeting on Wednesday, the board recommended a payment of Rs 7 per equity share of Rs 2 each.

“A major part of the financial year 2020 was impacted on account of the COVID-19 pandemic. However, despite the volatility in the business environment with core industrial sectors being negatively impacted, there are now initial signs of an uptick across some market segments post lockdown,” MD&CEO Sunil Mathur said.

“Increased Government spending in infrastructure is critical at this time which will have a cascading impact for a sustained revival in demand. Our focus continues to be on profitable growth in our Energy, Industry, Infrastructure and Mobility businesses,” he added.

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