Siemens reported 21% growth in net profit for December end quarter on the back of improved margins but decline in order inflow and flat revenue remain concerns for the Indian arm of the German MNC.
Siemens posted a net profit of Rs. 73.07 crores a rise of 21% over similar period last year. Sales for the quarter was flat at Rs. 2,450.9 crores against Rs. 2,470.9 crores for same period last year while new Orders for the quarter were Rs. 1,993.5 crores, down by 31% over the same period last year.
"Given the continuing difficult macro economic conditions in India our first quarter results show a solid performance with steady sales and a good improvement in bottom line. Nevertheless customer liquidity issues, delays in infrastructure projects commencement and decline in order book remain an area of concern to us,'' said Siemens managing director Armin Bruck.
"Margins have improved by 200 basis points. Overall the performance has been good except the infrastructure and cities division but order inflow and order book are down by about 30%. This will lead to slower revenue growth and is a concern,'' an analyst said.
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