Siemens’ net profit drops over 37 pc to Rs 408 crore in March quarter

New Delhi, May 13 Technology conglomerate Siemens Ltd on Tuesday reported over 37 per cent decline in its net profit at Rs 408 crore in January-March quarter, from Rs 649 crore in the year-ago period.

Revenue remained flat due to the ongoing normalisation of demand in digital industries and due to normal project delivery schedules in the Mobility business, the company said in its stock exchange filing.

The decline in profit from operations was due to under absorption and higher cost of material in the Digital Industries business.

Additionally, the profit was impacted by an extraordinary gain of Rs 192 crore from the sale of property in Q2 FY 2024 and demerger expenses of Rs 63 crore in the current quarter, informed the company.

The company follows an October-September cycle, which makes the January-March period its second quarter (Q2).

“In spite of the challenging macro environment, our Order Income grew by 44 per cent driven by our mobility and smart infrastructure businesses where we see continued public Capex spending on infrastructure,” said Sunil Mathur, Managing Director and Chief Executive Officer, Siemens Limited.

The company, a leading technology company focused on industry, infrastructure and mobility, said that the short cycle ‘Digital Industries’ business, however, continues to be impacted by muted private Capex spending.

“As private Capex picks up locally and globally, the demand for automation and digitalisation solutions will also increase, as technology has proven to be key to sustainable growth for industry and infrastructure,” said Mathur.

In the March quarter, new orders rose 44 per cent to Rs 5,305 crore and order backlog grew by 7 per cent.

In its earlier quarter (Q1), Siemens had reported a 21.5 per cent year-on-year increase in net profit at Rs 614.6 crore, compared to Rs 505.7 crore in the same period in FY24.

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