Siemens Ltd, the Indian arm of the German technology group Siemens AG, posted a 70 percent on-year rise in consolidated net profit at Rs 803 crore in the March quarter.
Consolidated revenues rose 18.4 percent to Rs 5,750 crore, Siemens, which follows October to September financial year, said in an exchange filing on May 14.
The board of Siemens India also announced that the company will invest Rs 519 crore to set up a new metro train manufacturing facility in Aurangabad, and increase capacity of its gas insulated switchgear factory in Goa.
The company's board also approved a proposal to demerge its energy business into a separate legal entity – Siemens Energy India Ltd.
As per the scheme of arrangement, shareholders of Siemens Ltd will receive one share of Siemens Energy India Ltd for every one share of Siemens Ltd.
The new entity will subsequently be listed on the BSE Limited and National Stock Exchange of India Limited, the company said in a regulatory filing.
For the quarter ended March 31, 2024, Siemen’s consol earnings before interest, taxes, depreciation, and amortisation (EBITDA) margin rose nearly 570 basis points to 20.9 percent.
One basis points is one-hundredth of a percentage point.
The company's consolidated operating margin rose mainly on the back of a fall in raw material prices seen during the quarter. Siemens reported a nine percent fall in raw material costs during the quarter ended March 31, 2024 to Rs 1,027 crore from Rs 1,129 crore in the same period a year ago.
The operating margin of the company's energy and digital industries segment rose significantly, lifting its overall profit and contributing to a the rise in overall profit for the quarter.
Siemens also saw its tax outgo rise 61 percent during the quarter to Rs 285 crore, which held back the rise in its net profit.
"There has also been a slowdown in ordering of industrial automation products due to normalization of demand following shorter delivery cycles. Our growth in profits include volume and price effects, continued productivity measures as also gains on account of sale of property and dividend received from subsidiaries," Siemens' Managing Director and Chief Executive Officer Sunil Mathur said.
The operating margin of the smart infrastructure segment rose around 300 basis points to 14.3 percent, as operating profit rose 59 percent to Rs 309.7 crore. Revenues from the segment grew 25.5 percent to Rs 2,165.5 crore from the year-ago period.
Going forward, Siemens will try and maintain current operating margins levels, Mathur said in a post-earning media call.
He added that Siemens saw a rise in operating margins during the quarter due to the sale of property worth Rs 192.3 crore during the quarter that ended March 31, 2024 and higher dividend during the period. Siemens saw its dividend rise to Rs 146.2 crore during Q4FY24 from Rs 78.2 crore in the same period a year ago.
Operating margin of the mobility segment rose around 50 basis points to 9.2 percent, with operating profit rising 65 percent from the year-ago period to Rs 69.8 crore. Revenue grew 55.7 percent to Rs 757.3 crore.
Revenues from the digital industries vertical rose 16 percent to Rs 1041.9 crore and profit rose 77.6 percent to Rs 172.1 crore.
The energy business clocked a revenue of Rs 1,637.5 crore and a profit of Rs 224.3 crore. In the year-ago period, revenue came in at Rs 1,555.4 crore and profit at Rs 176.6 crore.
The company's new orders stood at Rs 5,184 crore, an 83.4 percent fall from the previous year, when the company had booked orders worth Rs 31,151 crore, including an order of Rs 25,455 crore for the 9000 HP locomotive project.
Siemens is a technology company focused on industry, infrastructure, transport as well as transmission and generation of electrical power.
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