 "Siemens")
India-listed entity Siemens reported a 70 per cent rise in its net profit for the March 2024-ended quarter (Q4FY24) on the back of improved operational performance. Further, the company also announced fresh capex of more than Rs 500 crore and a demerger plan for its energy business, in separate announcements.
For Q4FY24, Siemens reported a net profit of Rs 803 crore attributable to the owners of the company, up from Rs 471 crore reported in the same period a year ago. Revenue from operations for the company also rose 18.4 per cent to Rs 5,750 crore from a year ago. Other income for the company grew multifold to Rs 321 crore, from Rs 117 crore on a year-on-year basis.
Sequentially, net profit grew 58.8 per cent and revenue grew 19.2 per cent.
The company beat street expectations as in a Bloomberg poll, three analysts estimated revenue at Rs 5,566 crore and four analysts estimated a net income adjusted of Rs 548 crore.
“Our growth in profits include volume and price effects, continued productivity measures as also gains on account of sale of property and dividend received from subsidiaries,” said Sunil Mathur, managing director and chief executive officer, Siemens.
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The announced additional capital expenditure, the company said, will be spent across two locations – Rs 333 crore to expand switchgear and clean air tech factory footprint in Goa and Rs 186 crore for a metro-train manufacturing capacity in Aurangabad. Tuesday’s announcement, in addition to earlier announced expansion at Kalwa in Maharashtra for power transformers, takes the full capex underway to upwards of Rs 1,000 crore, the company said. Mathur added the amount would be spent over a period of two to three years.
On the proposed demerger of the energy business, Siemens said, the company’s board has approved the proposal to demerge its energy business into a separate legal entity – Siemens Energy India. The entity will be subsequently listed and will mirror the shareholding of Siemens Limited, upon the receipt of requisite approvals. Mathur added the company aims to close the transaction and complete the listing in calendar year 2025. As per the scheme of arrangement, shareholders of Siemens Limited will receive one share of Siemens Energy India for every one share of Siemens Limited that they hold. The move is in line with the global demerger of Siemens (global)’s energy business into a separate entity named Siemens Energy.
New orders, the company said, were at Rs 5,184 crore for the quarter under review. Commenting on the order inflow, Mathur said, there was a deferral on closing of some large orders, where the timeline has shifted by a quarter or two for several reasons, including bureaucratic. Mathur also noted a slowdown in new order receipts for the industrial automation segment, attributing it to an inventory build-up related to supply chain changing dynamics for semiconductors.
