New Delhi— Siemens Ltd on Tuesday reported a sharp 37% year-on-year decline in net profit for the January–March period, with earnings falling to Rs 408 crore from Rs 649 crore in the same quarter last year.
The company, which follows an October–September financial year, said revenue remained largely flat during its second quarter (Q2), citing normalization in demand across its Digital Industries segment and routine project timelines in its Mobility business.
Profit from operations was impacted by lower absorption of fixed costs and higher material expenses in the Digital Industries unit. Additionally, the company noted that last year’s profit had been boosted by an exceptional gain of Rs 192 crore from a property sale, which did not recur this quarter. This quarter also included Rs 63 crore in expenses related to a demerger.
“In spite of the challenging macro environment, our order income grew by 44%—driven by strong performance in our Mobility and Smart Infrastructure businesses, where we continue to see robust public capital expenditure on infrastructure,” said Sunil Mathur, Managing Director and CEO of Siemens Ltd.
While public investments are fueling growth in select areas, the company said private capital expenditure remains subdued, particularly impacting the short-cycle Digital Industries segment.
“As private Capex picks up both in India and globally, we expect increased demand for automation and digitalization solutions, which are essential for sustainable industrial and infrastructure growth,” Mathur added.
During the quarter, Siemens reported new orders worth Rs 5,305 crore—a 44% jump year-over-year—while its order backlog increased by 7%.
In the previous quarter (Q1), Siemens had posted a 21.5% rise in net profit to Rs 614.6 crore compared to Rs 505.7 crore a year earlier. (Source: IANS)
