Siemens cuts expenses, reports higher profit

Siemens posted Rs 88.3 crore net profit for quarter ending March 2014 as against Rs 29.9 crore profit for similar period last year. The rise of profit was owing to 12% decrease in expenses.

Siemens reported 6.6 drop in new orders and sales too were lower by 8.5%. The company registered new orders of Rs. 2,620.1 crore in quarter ending March 2014 compared to Rs. 2,806.5 crores in the same period last year. Sales stood at Rs. 2,657.7 crores in Q2 2014, compared to Rs. 2,907.7 crores in Q2 2013. Siemens follows October-September financial calendar. Expenses for the quarter stood at Rs 2578 crore as against Rs 2955 crore for same period last year.

Siemens Ltd chief Executive Officer Sunil Mathur said "The volumes are stable when viewed in the backdrop of the macro-economic fundamentals. The improved profitability is a clear indication that internal measures aimed at increasing competitiveness have begun to take effect."

Siemens is implementing cost reduction programme aimed at improving profitability. Other measures include strengthening core business activities and optimise the use of its facilities in line with its parent company's strategy.