Siemens gained 7.41% to Rs 7,146.65 after heavy electrical equipment maker's net profit jumped 73.72% to Rs 896.4 crore in March 2024 quarter as against Rs 516 crore reported in the same period last year.
Total revenue from operations jumped 19% year on year (YoY) to Rs 5,313.8 crore during the second quarter ended March 2024.Profit before tax stood at Rs 1,163.3 crore, up 70.65% from Rs 681.7 crore recorded in the corresponding quarter previous fiscal.
The companys segment revenue from smart infrastructure stood at Rs 1,766.9 crore (up 28.98% YoY), energy business was at Rs 1,637.5 crore (up 5.27% YoY), while digital industries came in at Rs 1,041.9 crore (up 15.99% YoY), mobility was at Rs 715.5 crore (up 55.43% YoY) while portfolio companies revenue stood at Rs 217.1 crore (down 10.47% YoY) during the period under review.
New orders stood at Rs 5,184 crore in the second quarter ended 31 March 2024.
Sunil Mathur, managing director and chief executive officer, Siemens, said, The second quarter of Fiscal Year 2024 showed a robust growth in revenues built off a strong order backlog. Some large orders have been deferred. There has also been a slowdown in ordering of industrial automation products due to normalization of demand following shorter delivery cycles.
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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. Overall, our Q2 FY 2024 results reflect the continued robustness in the economy led by Government spending in infrastructure, which has resulted in increased capacity utilization and the beginning of capacity expansions by the private sector.
Meanwhile, Siemens announced the expansion of two of its 32 factories in India today. This is in addition to the capacity expansions of the power transformer factory in Kalwa and vacuum interrupter factory in Goa announced by the company in November 2023. With this, total capex investment is expected to exceed Rs 1,000 crore, stated the firm.
Further, the companys board approved an investment of around Rs 519 crore towards capacity addition at Gas Insulated Switchgear Factory, Goa and Metro train manufacturing facility, Aurangabad.
Lastly, the board of directors also approved the proposal to demerge its Energy Business into a separate legal entity Siemens Energy India (SEIL) (currently a wholly owned subsidiary of Siemens). SEIL will be subsequently listed and will mirror the shareholding of Siemens Limited, upon the receipt of requisite approvals.
As per the scheme of arrangement, shareholders of Siemens will receive 1 share of SEIL for every 1 share of Siemens. The new entity will subsequently be listed on the BSE and National Stock Exchange of India. The process of demerger, including receipt of requisite approvals, and subsequent listing of SEIL is expected to be completed in 2025.
Siemens is a technology company focused on industry, infrastructure, transport as well as transmission and generation of electrical power. The firm is the flagship listed company of Siemens AG in India.
The counter hit an all time high of Rs 7,243.60 in today's intraday session.
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