The Hindu Business Line : Siemens net up 56% on power biz growth

SIEMENS Ltd has reported a net profit of Rs 49 crore for the first quarter ended December 31, 2005, recording a 56-per cent growth over the corresponding year-ago quarter (Rs 31.4 crore). Net sales amounted to Rs 851 crore (Rs 503 crore), registering a growth of 69 per cent.

The growth was attributed to higher order volumes, the company's "investment-led growth strategy" and its aggressive marketing initiatives.

Although all the operating businesses registered double-digit growth, the key driver was the power business, said a statement from the company.

The revenue impact of the merger of Siemens VDO into Siemens Ltd for the quarter was Rs 6 crore and the profit was also influenced by the depreciation methodology to align the same with Siemens Ltd, said the statement.

The power business was the highest contributor to revenues, accounting for Rs 349.5 crore (Rs 143 crore). This was followed by automation and drives business at Rs 226 crore (Rs 185 crore).

New orders amounted to Rs 4,162 crore, four fold higher than orders secured in the same year ago quarter of Rs 817 crore. This included two mega orders - one from Torrent for Rs 888 crore and the other from Qatar for Rs 2,241 crore. Total expenditure rose 66.9 per cent to Rs 781 crorefrom Rs. 468 crore. Profit before interest and depreciation amounted to Rs 79.9 crore (Rs 45.3 crore). Profit before tax amounted to Rs 70.4 crore, rising 58 per cent year-on-year.

The company's unexecuted order position as on December 31, 2005 was Rs 7,058 crore (Rs 2,454 crore).

Board okays stock split, 2 acquisitions

THE board of directors approved the proposal for splitting the present face value of the equity shares of Rs 10 each into Rs 2 each. This is subject to shareholder approval.

The board also approved proposals to acquire two new businesses. The first is 50 per cent stake in Flender Ltd, a joint venture between Flender AG and Babcock Borsig India Ltd. (Siemens AG had earlier in 2005 acquired the majority stake in Flender AG.) This company manufactures industrial gearboxes and related accessories.

The second is the isolator business of Elpro International Ltd, a listed Pune-based company, with all its assets and liabilities, said a statement.

"To meet the growing market demands, we will continue to invest in enhancing capacities and resources, including manpower," said Mr J. Schubert, Managing Director, Siemens Ltd. The Siemens stock gained Rs 171.4 or 3.99 per cent on the BSE today at Rs 4,468.25 against the previous day's close of Rs 4,296.85.