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Siemens drops after Q1 results

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Capital Market
Last Updated : Jan 30 2015 | 6:04 PM IST

Siemens fell 0.78% to Rs 1,048.50 at 15:23 IST on BSE after net profit surged 873.93% to Rs 634.03 crore on 7.71% decline in total income to Rs 2216.28 crore in Q1 December 2014 over Q1 December 2013.

The Q1 result was announced during market hours today, 30 January 2015.

Meanwhile, the S&P BSE Sensex was down 506.70 points or 1.71% at 29,175.07.

On BSE, so far 1.26 lakh shares were traded in the counter as against average daily volume of 53,000 shares in the past two weeks.

The stock hit a high of Rs 1,060 and a low of Rs 992.10 so far during the day.

Siemens' net profit during the quarter was boosted by exceptional income. There was an exceptional income of Rs 704.58 crore in Q1 December 2014 compared with an exceptional income of Rs 16.20 crore in Q1 December 2013.

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Exceptional income in Q1 December 2014 represents profit on sale of Metals Technologies business to VAI Metals Technologies (a subsidiary of VAI Metals Technologies GmbH, Germany) which was sold for a consideration of Rs 1023.27 crore as a slump sale on a going concern basis with effect from the close of business hours on 31 December 2014 and a profit of Rs 704.58 crore has been recorded.

Siemens' sales declined 9.3% to Rs 2140.80 crore in Q1 December 2014 over Q1 December 2013.

Siemens' new orders rose 4.01% to Rs 2089.30 crore in Q1 December 2014 over Q1 December 2013.

Sunil Mathur, Managing Director and Chief Executive Officer of Siemens said, The improved profitability reflects the positive impact of various internal productivity measures undertaken to increase the company's competitiveness. Though the improvement in new orders is encouraging, our order inflows are greatly dependent on private sector & Government's willingness to start capex spending once again which is largely dependent on their confidence on a sustained economic revival in the country and lower interest rates. We will continue focusing our efforts to strengthen our core competencies and to increase our customer focus, so as to be well-positioned to capitalize on the new opportunities.

Siemens, in which Siemens AG holds 75% of the capital, is the flagship listed company of Siemens AG in India. Siemens focuses on the areas of electrification, automation and digitalization.

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First Published: Jan 30 2015 | 3:19 PM IST

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