Siemens Ltd has reported a 139 per cent surge in net profit at Rs 84 crore for the year-ended September 30, 2000 against Rs 35.12 crore in the corresponding period previous year.
The sharp increase in net profit was mainly due to exceptional items (income from restructuring of the business operations) of Rs 15.48 (Rs 3.15 crore) and a substantial fall in interest to Rs 4.88 crore from Rs 27.82 crore.
Buoyed by the increase in net profit, Siemens has declared a dividend of 65 per cent, including a one-time special dividend of 30 per cent, during the period.
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Turnover increased by 3 per cent to Rs 1,083.27 crore (Rs 1,050.58 crore), while the company has reported a lease and other income of Rs 89.63 crore (Rs 71.50 crore). The price erosion and lack of demand for certain products had affected the topline of the company.
Operating profit before interest and depreciation jumped to Rs 115.52 crore from Rs 98.57 crore. Gross profit after interest but before depreciation was Rs 110.63 crore (Rs 70.75 crore), while depreciation was Rs 31.50 crore (Rs 35.80 crore) during the period.
Siemens has received new orders worth Rs 1,192 crore (Rs 1,274 crore). "The order inflow was in line with the planned volumes, which is reflective of the flat market in the infrastructure and industry segments.
The unexecuted order value position as on September 30 was Rs 823.7 crore (Rs 686 crore), an increase of 20 per cent," Siemens managing director J Schubert said.
The capital expenditure of the company amounted to Rs 8.63 crore (Rs 31.7 crore). "The company has been facing problems in its units in Calcutta, Kalwa and Nashik. We will have to frame strategies to solve these hurdles," he added.
During the year, the company was able to consolidate its position through a four-point programme which entailed a complete review of the business portfolio, restructuring of the balance sheet & asset management; improving quality, productivity and cost structure; and, focussing on human resources.
Some of the significant developments during the year included the acquisition of a 26 per cent stake in Landis and Gyr, which is a strategic step towards becoming a full range supplier in the area of transmission and distribution' and divesting the 51 per cent stake in Siemens Telecom, while taking over the mobile business.
The company is planning to continue the volunteer retirement scheme (VRS) in its plants to bring down the cost of production. Siemens is also planning to focus on exports of its products and services.