Financial year 2012-13 was yet another challenging year for the Indian
economy. The investment scenario was weighed down by numerous factors
such as delays in statutory approvals, slow decision-making, land
acquisition issues, volatility in commodity prices and exchange rates,
higher capital costs and non-availability of raw material. Accentuating
the low business and investor confidence, the Reserve Bank of India
(RBI) revised downward, the GDP growth forecast to 4.8 percent for the
period April 2013 to March 2014.
The uncertain macro-economic environment also affected Siemens Ltd.,
which operates in the business segments of infrastructure, power,
industrial automation and healthcare. While order growth was
reasonable, revenues declined and the Company''s profitability was also
impacted due to increased project costs, lower off-take of finished
goods and project delays.
For the financial year ended September 30, 2013, the Company received
new orders valued at X 10,957.3 crores, a 7% increase over X 10,235.1
crores in the financial year ended September 30, 2012. Sales were down
by 12% to X 11,145.2 crores, compared with X 12,708.1 crores in the
The order backlog as of September 30, 2013 stood at X 12,926.4 crores -
a decline of 5% compared with X 13,660.4 crores in the previous year.
Profits from operations stood at X 170.5 crores, down by 75% compared
with X 690.3 crores in financial year 2011-12.
For the year ended September 30, 2013, the Company''s profit before tax
stood at X 218.6 crores, down by 58% compared with X 520.9 crores in
the previous year. The profit after tax for the year was X 194 crores,
down by 43% compared with X 343.2 crores in the previous year.
The Board of Directors has recommended a dividend of X 5 per equity
share of face value of X 2 per share for the financial year ended
September 30, 2013. The Company had paid a dividend of X 6 per equity
share during the previous financial year.
Keeping the challenging economic conditions in perspective, all four
Sectors - Energy, Healthcare, Industry and Infrastructure & Cities -
performed at par with the market.
Among the highlights of the financial year 2012-13, the Energy Sector
won an order to install a state-of-the-art distributed control system
for the renovation and modernization of the Korba Stage-II plant of
National Thermal Power Corporation. The Sector was awarded a contract
by Bangladesh Steels Re-Rolling Mills Ltd. to supply the first private
sector funded gas-insulated switchgear substation project in
Bangladesh. It also established Global Engineering Centres in
Coimbatore and Mumbai in order to strengthen its capability to support
global customers with high quality, end-to- end solutions.
The Healthcare Sector received a major order from Sir HN Hospital and
Research Centre, Mumbai (Reliance) for the complete imaging package.
Additionally, NM Medical, a diagnostic imaging chain with a pan-India
presence, selected Siemens MAGNETOM Spectra 3T MRI scanner for
installation in its new diagnostic center at Sancheti Hospital in Pune.
This will be one of the first installations of MAGNETOM Spectra with
the newly introduced 3T MRI in the country. Other major highlights
include the installation of India''s first simultaneous PET MRI at
Indraprastha Apollo, New Delhi and Somatom Definition Edge, the
newly-introduced Cardiac CT scanner at PSG Hospital, Coimbatore.
The Industry Sector received an order from Rashtriya Ispat Nigam Ltd.
to modernize the Visakhapatnam steel plant. The Steel Authority of
India Ltd. signed a three-year Memorandum of Understanding (MoU) with
the Sector''s SITRAIN unit to provide training for its technical staff.
The Sector also unveiled the Siemens Productivity Tour, a nationwide,
multi-city mobile road show aimed at providing small and medium
manufacturing enterprises across India with technologies that will
enhance their productivity and efficiency.
The Infrastructure & Cities Sector secured two new contracts to
construct 38 sub-stations that will improve power distribution
throughout Bangladesh. The Sector continued to support Bangladesh''s
Rural Electrification Board in its efforts to provide reliable power
supplies and improve economic development in western Bangladesh. In
this connection, the Sector installed and upgraded existing power
distribution facilities in the country. The Sector also won orders to
supply rolling stock, electrification and a signaling system for the
Gurgaon Metro and Delhi Metro, thereby improving travel for over 30,000
passengers per hour.
The Company continued its focus on its localization initiatives under
the SMART (simple-to-use, maintenance-friendly, affordable, reliable
and timely-to-market) strategy and launched additional solutions such
as SMART@MT packages for the metals industry and SMART numerical
relays. The SMART products provide a competitive edge to the Company
over local and Asian competitors through a combination of quality
features and affordability.
Siemens Ltd. has been conscious of its responsibilities as a corporate
towards all its key stakeholders - society, employees, customers and
During the financial year 2012-13, Siemens Ltd. increased its focus on
the social and education sector through corporate citizenship
initiatives. I am glad to inform you about the success of ''Project
Asha'', an integrated, sustainable development initiative that is
transforming the lives of around 300 villagers in Amle village, around
130 kilometers from Mumbai.
Among other corporate citizenship initiatives at Siemens in India is
Sanjeevan Mobile Clinic that provides accessible and affordable primary
healthcare focusing on community outreach, health promotion, preventive
education and curative services in remote rural areas. The Company has
also undertaken upgradation of various Industrial Training Institutes
(ITIs). The Company has also awarded scholarships for engineering
students from less-privileged communities and continues to provide
support for the development of children at the Welfare Society for
Destitute Children, Mumbai. These initiatives are already
content-wise, fully in line with the recent amendment to the Company''s
In addition, our sustainability initiatives were also acknowledged by
the Confederation of Indian Industry (CII), when the Company was ranked
Number 1 in the Capital Goods Sector (as per BSE classification) and
graded as a Sustainable Plus Platinum Company as part of CII''s
Sustainability Rating. The Company was amongst the Top 6 out of the Top
100 listed companies in India.
Siemens Ltd. continued to focus on the sustained development of its
dynamic workforce, an important asset to the Company. New learning and
development programs launched included the ''Local Key Expert Career
Program'' aimed at developing customized career paths linked to critical
business roles in research and development, engineering and
Various HR processes were simplified and made flexible, such as medical
insurance, group personal accident insurance, parents'' insurance and
As of September 30, 2013, the Company''s employee strength was 11,539 as
compared to 12,041 as of September 30, 2012. This includes an addition
of 908 employees as a result of the merger of Siemens Power Engineering
Pvt. Ltd. and Winergy Drive Systems India Pvt. Ltd. The new employees
have been integrated into the Energy Sector and Industry Sector
During the financial year 2012-13, the Company initiated measures to
optimize capacity and resource utilization across locations to counter
the lack of market demand.
The Company continues to have a cordial relationship with its unions.
The road ahead - the outlook for Siemens Ltd.
While the company has already initiated measures to optimize its cost
position and productivity in the factories, the growth of the Company
is also dependent on the implementation of government policies to
promote infrastructure development within the country and create an
environment conducive to investment in capital goods.
It is therefore imperative that the government and the RBI work in
unison to take urgent steps to create an investment friendly
environment. The recent clearances given by the Project Monitoring
Group and the Cabinet Committee on Investment for projects in the power
and infrastructure space are positive signs, but more needs to be
In conclusion, I would like to sincerely thank our customers, the
board, management, unions and most importantly, the dedicated employees
for their consistent support and commitment to Siemens Ltd. during a
very challenging year.
Deepak Parekh Chairman