Siemens’ performance on track: Stable performance in a challenging fiscal

For the financial year ended September 30, 2009, Sales of Siemens Ltd. rose to Rs. 8,389 crore and Profit from Operations increased by 32% to Rs. 945 crore as compared to the corresponding period of the previous year. “Our robust and innovative portfolio combined with an increased focus on Project Management & Asset Management supported our performance in what has been one of the most challenging years in recent times.”

Siemens Ltd. received New Orders valued at Rs. 8,796 crore despite tough market conditions in the 12 months ended September 30, 2009 as compared to Rs. 8,718 crore in the corresponding period of the previous year, registering a marginal growth. Sales also rose marginally to Rs. 8,389 crore for the year ended September 30, 2009 as compared to Rs. 8,296 crore in the corresponding period of the previous year.

For the year ended September 30, 2009, the Company’s Profit Before Tax stood at Rs. 1,432 crore as compared to Rs. 892 crore in the previous year, registering an increase of 61%. This increase was primarily on account of a substantial one time increase in Financing & Investment Income resulting from the Company’s sale of Siemens Information Systems Ltd. (SISL) and Siemens Information Processing Services Pvt. Ltd. (SIPS). The Profit After Tax rose by 76% and stood at Rs. 1,045 crore as compared to Rs. 593 crore in the previous year.

The Unexecuted Order Value as of September 30, 2009 stood at Rs. 10,292 crore, a rise of 5% (September 30, 2008: Rs. 9,834 crore). As on September 30, 2009, Siemens Ltd. had 6,683 Employees as against 6,532 on the corresponding date in the previous year.

The Board of Directors has recommended a dividend of Rs. 5/- for an equity share of Rs. 2/- each for the financial year ended September 2009. During the previous fiscal, the Company had paid a dividend of Rs. 3 for an equity share of Rs. 2/- each.

For fiscal 2008-09, the consolidated result of Siemens Ltd. Group includes that of Siemens Ltd., Siemens Building Technologies Pvt. Ltd., Siemens Rolling Stock Pvt. Ltd. (SRSPL), Flender Ltd. (50%-10 months, 100%-2months), Siemens Information Systems Ltd. (SISL) (for nine months) and Siemens Information Processing Services Pvt. Ltd. (SIPS) (for nine months).

The Sales for Siemens Ltd. Group in fiscal 2008-09 stood at Rs. 9,286 crore, a decline of 4% over the previous fiscal (2008: Rs. 9,680 crore), while New Order value stood at Rs. 10,090 crore (2008: Rs. 10,287 crore). The Profit Before Tax stood at Rs. 1,088 crore, a rise of 16% over Rs. 942 crore in the previous fiscal. The Profit After Tax was Rs. 705 crore, as compared to Rs. 600 crore, an increase of 18%.

The Board of Directors at its meeting held today approved the acquisition of the balance 13.85% stake in Siemens Building Technologies Pvt. Ltd. (SBTPL) for a total consideration of Rs. 70.2 crore. With the said acquisition, SBTPL would become a 100% subsidiary of the Company. Subsequently, it is proposed that SBTPL would be merged with the Company. Further, a meeting of the Board of Directors of the Company will be held on November 30, 2009, inter alia, to consider the proposal of amalgamation of Siemens Healthcare Diagnostics Ltd. (SHDL) with the Company. The wholly owned subsidiary of Siemens AG, Siemens Diagnostics Holding II B. V., Netherlands holds 68.73% equity stake in SHDL.

Addressing the annual press conference, Dr. Armin Bruck, Managing Director, Siemens Ltd. said, “Our business performance during the year has been stable and on expected lines despite the economic slowdown. We have been able to improve our profit margins significantly. Besides focusing on steady execution of projects, we stayed ahead of the competition with our robust and customized offerings. Our strategy of tapping profitable growth opportunities in high potential and new markets coupled with focus on green technologies helped us counter the negative fallout of the economic crisis.

Commenting on the Company’s future plans, Dr. Bruck said, “There were some positive messages in the market in the last four months that gave signs of an upturn in the Indian economy. However, the market sentiment will be of caution and the 2009-10 fiscal will be a year of recovering the growth momentum. We will evaluate and pursue every opportunity the market offers in line with our stated objective of achieving profitable growth.”

Siemens Ltd. is the flagship listed company of Siemens AG in India. Siemens in India, which comprises 19 legal entities, is a leading provider of industry and infrastructure solutions with a business volume aggregating about Rs. 12,000 crore. It operates in the core business areas of Industry, Energy and Healthcare. It has nation-wide Sales and Service network, 19 manufacturing plants, a network of around 500 channel partners and employs about 16,800 people.