Diversified group Siemens Ltd today reported a huge 76.5 per cent decline in net profit at Rs 36.42 crore in the third quarter ended June 30 amid weak market conditions and unbooked profits,due to customers delaying offtake.
It had reported net profit of Rs 154.77 crore in the corresponding period last year.
The company follows a January-December financial year.
The company registered sales of Rs 2,793 crore,up by 2 per cent over the same period last fiscal,a company statement said.
Commenting on the dismal results,Armin Bruck,Managing Director,Siemens,said,”Due to the uncertain economic environment coupled with high interest rates,our customers,across all our businesses,are experiencing a drop in capital expenditures.
“While our short-cycle business has remained stable,the volumes in our long-cycle project business have declined.
“Our profitability has also been impacted through increased project costs and unbooked profits due to customers delaying offtake,” Bruck said.
A comparison of the profits for past periods was also vitiated by the fact that the profits in those periods include adjustments arising out of revisions in revenues and costs related to ongoing projects,the statement said.
“We continue to concentrate on operational efficiencies to manage the challenges of this uncertain business environment… we are putting our plans to open a local manufacturing facility for wind solutions at Vadodara on hold,” Bruck said.
Siemens in India comprises 14 entities and is a leading player in electronics and electrical engineering with sales aggregating about Rs 12,000 crore. It operates in infrastructure,energy and healthcare segment,has 21 manufacturing plants and employs about 18,000 people.