Financial year 2013-14 was yet another challenging year for the Indian
economy. In addition to being an election year, the investment
scenario continued to be affected by factors such as delays in
approvals for large infrastructure projects, higher capital costs and
non-availability of raw material. While business sentiment improved as
a result of a stable Government coming to power at the Centre, it is
yet to materialize into new orders.
Siemens Ltd. operates in the business segments of Infrastructure,
Power, Manufacturing and Healthcare. Along with the rest of the
industry, the Company''s performance too was impacted by the uncertain
macro-economic conditions | prevailing in the country. While New Orders
and Sales were lower in financial year 2013-14 compared with the
previous financial year, the Company considerably improved its
profitability. This was largely due to its sustained focus on
optimizing internal cost and productivity measures.
For the financial year ended 30th September, 2014, the Company received
New Orders valued at Rs. 103,238 million, a 6 per cent decrease over
Rs. 109,573 million in the financial year ended 30th September, 2013.
Sales (excluding Other Operating Revenues) were down by 6 per cent to
Rs. 104,483 million, compared with Rs. 111,452 million in the previous
The Order Backlog as of 30th September, 2014 stood at Rs. 121,022
million - a decline of 6 per cent compared with Rs. 129,264 million in
the previous year. Profits from Operations stood at Rs. 3,652 million,
significantly higher by 114% compared with Rs. 1,705 million in
financial year 2012-13.
For the year ended 30th September, 2014, the Company''s Profit Before
Tax (including Exceptional Income) stood at Rs. 8,436 million, up by
286 per cent compared with Rs. 2,186 million in the previous year. The
Profit After Tax for the year was Rs. 6,032 million, up by 211 per cent
compared with Rs. 1,940 million in the previous year.
The Board of Directors has recommended a Dividend of Rs. 6 per equity
share of face value of Rs. 2 per share for the financial year ended
30th September, 2014. The Company had paid a Dividend of Rs. 5 per
equity share during the previous financial year.
The Company''s performance during the financial year 2013-14 was at par
with the market, considering the challenging macro-economic
Among the highlights of the financial year 2013-14, the Energy Sector
received orders for approximately Rs. 2280 million from Reliance
Industries Limited for supply of four SST 600 Steam Turbogenerator
units for its Jamnagar Refinery. The Sector also received a crucial
turnkey order from Power Grid Corporation of India Limited worth
approximately Rs. 4110 million.
The Healthcare Sector, which witnessed growth in Sales of 28 per cent,
won the Imaging Company of the Year Award at the 2014 Frost & Sullivan
India Healthcare Awards. The Sector installed the world''s longest lab
automation track at Thyrocare, Mumbai, and also installed modern
healthcare equipment such as ultrasound system with wireless
transducers and 128 slice CT scanners in Tier II cities - Coimbatore
As part of its continuous initiative to enhance the technical skills of
the industry''s work force, the Industry Sector signed Memoranda of
Understanding with Rashtriya Ispat Nigam Ltd. and Government Tool Room
& Training Centre. It also launched a first-of-its-kind Technology and
Application Center, which allows machine tool manufacturers and users
to get a hands-on experience of the latest CNC technologies and
solutions from Siemens and its partners. The Sector, which was the
first India-based manufacturer to launch motors certified for
International Efficiency rating IE3, won global recognition for its
1LA2 series of Low Voltage IE3 induction motors - the Super-Efficient
Equipment Appliance Deployment (SEAD) Global Efficiency Medal.
The Infrastructure & Cities Sector continued its contribution to the
nation''s urban infrastructure as the Siemens- powered Rapid Metro Rail
Gurgaon began its passenger operations. The six-kilometre metro line
connects Gurgaon to the Delhi Metro rail network through an
inter-change station at Sikandarpur. The Sector also received repeat
orders worth around Rs. 743 million from Diesel Locomotive Works,
Varanasi, for Traction Motors. The Company has been a
preferred supplier of equipment for the Indian Railways for over six
decades now. The Sector further enhanced the installation base for its
Smart Grid solutions after winning orders from power distribution
companies in Uttar Pradesh. These projects are part of the
Government''s Restructured Accelerated Power Development and Reforms
Skilled workforce is a crucial factor in the development of India as a
manufacturing hub and this aspect has been reinforced recently by the
Government through the ''Make in India'' programme. As a responsible
Corporate Citizen, Siemens Ltd. has endeavored to support and promote
technical education through its Scholarship programme.
As part of this programme, the first batch of meritorious Scholars from
Engineering Colleges in Maharashtra, Goa and Gujarat were provided a
holistic development plan in addition to financial support. In
financial year 2013-14, the programme was launched in over 100
Government Engineering Colleges across India.
In addition, with an aim to produce skilled, employable technicians,
the Company has also initiated measures to upgrade Government
Industrial Training Institutes (ITIs).
The Company already has two other ongoing Corporate Citizenship
projects in the form of Siemens Sanjeevan Mobile Clinics and Project
Asha. These projects have contributed to the creation of sustainable
communities, enhancing living conditions and providing primary
To remain competitive in compensation and rewards offered, continual
efforts were made to make compensation and benefits flexible,
tax-friendly and market-linked. New and enhanced policies and employee
schemes were launched. In addition, the Company sustained its growth
and development initiatives, while also focusing on recruiting the
As of 30th September, 2014, the Company''s employee strength was 10,933
as compared to 11,469 as of 30th September, 2013.
During the financial year 2013-14, 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.
During the financial year 2013-14, the Company realigned itself as part
of the global Vision 2020 strategy. As of 1st October, 2014, the
Company has eliminated Sectors and has bundled business into eight
Divisions: Power and Gas, Power Generation Services, Energy Management,
Mobility, Building Technologies, Digital Factory, Process Industries &
Drives and Healthcare. The new organization with a flatter structure is
aimed at increasing proximity to customers.
Overall, the macro-economic situation is still challenging and concrete
policy measures announced during the financial year 2013-14 will take
time to reflect in business. The Company has taken measures to increase
its competitiveness and strengthen its capabilities.
On the basis of these strengths, the Company expects profitable and
sustainable growth in the future. It is however important that
financial and regulatory reforms continue to take effect. Concrete
measures must be taken to facilitate the completion of large
infrastructure projects that have been stalled, while encouraging new
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
another challenging year.