On Wednesday, technology major Siemens NSE -2.04 percent posted a 4.7 percent decrease in net profit at Rs 333 crore for the September quarter primarily due to higher lockdown expenses.
“The Net Profit after Tax from continuing operations decreased by 4.7% to Rs 333 crore, compared to the same period of the previous year a company statement said.
Revenue from continuing operations decreased by 9.2 percent over the same quarter of the previous year to Rs 3,422 crore.
The business observes the financial year from October to September. New orders from continuing operations increased 8.7 percent to Rs 3,220 crore during the quarter compared to the year-ago period, it added. The business has a high order backlog of over one year of sales, partly due to the country’s lockdown time, which has resulted in lower revenues.
The profit was affected, it explained, because of expenses incurred during the lockdown time amounting to Rs 285 crore. The board approved a dividend payment of Rs 7 per equity share of Rs 2 each at its board meeting on Wednesday.
“A major part of the financial year 2020 was impacted on account of the COVID-19 pandemic. However, despite the volatility in the business environment with core industrial sectors being negatively impacted, there are no initial signs of an uptick across some market segments post lockdown,”Sunil Mathur, MD&CEO
“Increased Government spending in infrastructure is critical at this time which will have a cascading impact for a sustained revival in demand. Our focus continues to be on profitable growth in our Energy, Industry, Infrastructure and Mobility businesses,” he added
Siemens AG is a Munich-based German multinational conglomerate corporation with offices abroad and the largest industrial production company in Europe.
The company is a leading manufacturer of medical diagnostic equipment and its medical health-care division, which generates about 12% of the total revenue of the company, is its second-most profitable segment, after the industrial division. The business is a member of the Stock Market Index Euro Stoxx 50.
According to its earnings statement, Siemens and its subsidiaries employ approximately 385,000 people worldwide and posted global revenues of approximately EUR 87 billion in 2019. Siemens was involved in a multi-national bribery scandal beginning in 2005. The Siemens Greek bribery scandal over transactions between Siemens and Greek government officials during the 2004 Olympic Summer Games was one part of this scandal.