i advise traders or short term buyers 2 remain ouuta dis stock as it has no major upside potential ....but long term investors can buy d stock at 500 level...
ithe reason it is fellin is -
The financial performance of Siemens for the fourth quarter ended 31st March 2008 has not been good. On a QoQ, despite the 12% increase in net sales, there has been a drastic fall in the bottomlines. The main growth drivers were automation and drives, industrial solutions and services businesses. EBIDTA slipped by a whopping 94% to Rs.16.66 crore, PBT fell 97% at Rs.7.12 crore. PAT slipped down by over 99% to Rs.1.66 crore from Rs.197.05 crore in Q3FY08.
In accordance with the established practice in relation to construction contracts, contract revenue is calculated based on the ratio of costs incurred to total estimated costs to complete the project. After the revision of the costs to complete certain projects, in the quarter ended March 31, 2008, there was a reversal of turnover amounting to Rs.116.60 crore. There was also an additional provision for estimated losses aggregating Rs.109.80 crore, which was included in Other Expenditure and all these together pulled down the profits.
What further compounded the fall in profits was the restructuring. In the last fiscal, the company has three businesses that were subsequently transferred to separate Siemens companies or sold. So at that time, the revenues of the company looked pretty good and as these are not a part of the books in this fiscal, naturally, the picture now looks dimmer.
For the future, the company has gone on record to assure that this has been a one-time-hit on the profit and the company has already chalked out corrective measures for better risk management in future. Its new orders stood at Rs.2,342 crore, an increase of 20% over the corresponding quarter of the previous year.
Q4 has reflected the pains of the transition and it will take some time for this change to get absorbed and settled. The long outlook continues to look good, though it would not be prudent to expect something extraordinary immediately in the coming months. Stay invested, it’s a sound company.
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