The macro-economic situation continued to remain challenging in the
year ended 30th September, 2015. While Government and Public Sector
spend has commenced mainly in Roads, Railways and Power Transmission
segments, investments in other major segments such as Defense, Power
Generation and Distribution, Steel and Cement are yet to improve. With
surplus capacities currently in the Private Sector, fresh capacity
additions in various verticals of Food & Beverage, Pharmaceuticals etc
are also restrained.
The growth of Siemens Limited is closely linked to the growth of the
Indian economy. For the economy to grow, it is imperative that there is
an increase in public spending which in turn will fuel demand.
For the financial year ended 30th September, 2015, the Company received
New Orders valued atRs, 101,322 million, a 2 percent decrease over Rs,
103,238 million in the financial year ended 30th September, 2014. Sales
(excluding Other Operating Revenues) were down by 2 percent to Rs,
102,831 million, compared with Rs, 104,483 million in the previous
The Order Backlog as of 30th September, 2015 stood at Rs, 95,894
million - a decline of 21 per cent compared with Rs, 121,022 million in
the previous year. Profits from Operations stood at Rs, 7,605 million,
up by 108% compared with Rs, 3,652 million in the previous year.
For the year ended 30th September, 2015, the Company''s Profit Before
Tax (including Exceptional Income) stood at Rs, 16,964 million, up by
101 per cent compared with Rs, 8,436 million in the previous year. The
Profit after Tax for the year was Rs, 11,833 million, up by 96 percent
compared with Rs, 6,032 million in the previous year.
The Board of Directors recommended a Dividend of Rs,6 per equity share
and a Special Dividend of Rs,4 per equity share (in view of the large
exceptional income during the FY 2014-15) having face value of Rs,2
each for the financial year ended 30th September, 2015. The Company had
paid a Dividend of Rs, 6 per equity share during the previous financial
From an operational point of view, the Company continued its focus on
the Customer while also driving operational excellence. There were a
few key highlights during the financial year.
The Energy Management Division of the Company further strengthened its
partnership with Power Grid Corporation of India Limited for upgrading
the national grid from 765kV to 1200kV. It also received orders to
supply Gas Insulated Switchgear substations. In addition, the Division
is supporting various State Power Distribution companies in modernizing
their infrastructure by implementing Smart Grid technology (SCADA/DMS).
These solutions contribute to improvement of efficiencies in the
nation''s power transmission and distribution system.
The Power and Gas Division maintained its market share position while
operating in an environment where new Capital Expenditure in the
Private Sector has been put on hold and Public Sector tenders were not
The Digital Factory, Process Industries and Drives and Healthcare
Divisions were able to maintain market share while growing at a
reasonable rate. The Building Technologies Division continued to grow
appreciably while gaining market share and the Mobility Division won a
couple of good orders from Diesel Locomotive Works but was unable to
In the area of Smart Cities, Siemens signed a Memorandum of
Understanding with the Confederation of Indian Industry and
subsequently formed a Consortium with 9 other companies and 2 banks to
address the needs of cities. Siemens also signed a separate MOU with
Infrastructure Leasing & Financial Services and Gujarat International
Finance Tec-City Company Limited to develop Smart Mobility Solutions
for Gujarat International Finance Tec-City. With the thrust being put
by the Government on Smart Cities, we are confident that Siemens is
well positioned to address this very important market.
The Company is committed to acting responsibly to achieve economic,
environmental and social progress. During the financial year, the
Company further strengthened its focus on customers while also
addressing the various needs of its employees. Substantial work has
also been done in the area of CSR. In this regard, Siemens Limited
follows the guidelines set for Business Responsibility Reporting (BRR)
while working towards the goal of responsible and sustainable
During the financial year, the Company continued its focus on retention
and development of talent. Many initiatives have been taken by the
Company''s Human Resources team and the Divisions to make the Company
the most preferred engineering company in India. The initiatives,
which are ongoing, are centered around Learning and Development, Health
Management, Environmental Protection, Health and Safety.
The Road Ahead - the Outlook for Siemens Ltd.
Looking ahead, with private sector capital expenditure getting
deferred, the growth drivers for the Company clearly lie in increased
public sector investments in Power Generation, Transmission,
Distribution and Mobility. Opportunities in the form of large tenders
are awaited for High-Voltage Direct Current solutions, Metros, Electric
Multiple Unit Locomotives, Ultra-Mega Power Projects, etc.
In such a scenario, the Company''s strategy is focused on three aspects:
profitable growth in new orders, selective participation in large
orders with profitability being the key driver and continued focus on
operational excellence and cash. We have the commitment of our parent
company''s Managing Board, which incidentally visited India to review
and express their support for this strategy.
I am confident that with the Company''s strengths and competencies in
Electrification, Automation and Digitalization, it can deliver on the
Government''s initiatives of Make in India, 24/7 Power for All and Smart
Cities as also serve the needs of the modernization of the Indian
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.
Deepak Parekh Chairman