Siemens Q1 net plunges 70% to Rs 70.7 crore

Electronics and electrical engineering major Siemens today posted a 70.29 percent decline in its net profit for the first quarter ended December to Rs 70.7 crore compared with Rs 238 crore a year ago.

The company's total income too dipped to Rs 2,396.87 crore against Rs 2,580.38 in the same period last year.

The domestic arm of the German major follows an October to September fiscal period.

"Performance is below our expectations as liquidity issues in the market resulted in delay in project closures," Siemens managing director Armin Bruck said in a statement here.

He said there were delays in financial closure of projects and caution in the decision-making process of its customers due to various economic environment challenges.

"In spite of this, we continue to focus on building a robust product portfolio and expand our local manufacturing footprint," he said.

Recent developments like the higher IIP index for November, lower inflation and rbi easing its stand are pointing to better economic conditions, Bruck said, adding this would lead to improved business confidence in the coming quarters.

During the quarter, Siemens received orders worth Rs 2,834 crore and also launched the first ever 1,200 kv SF6 circuit breaker, which was handed over to PowerGrid Corporation in November.

"It is a huge leap from the existing 765kv transmission voltage. Compared to the 765kv system's power transmission capacity of 2500 mw, the 1200 kv circuit has a capacity of transmitting 8000 mw," Bruck said.

On January 28, the company launched two new factories for its smart grid and city infrastructure solutions in Goa at an investment of Rs 200 crore, the statement said.