Siemens Limited registered a revenue from continuing operations of Rs3,422cr for the July-September quarter, a 9.2% decrease over the corresponding quarter of the previous year. Profit from Operations from continuing operations improved from 10.0% to 11.4% of revenue for the corresponding quarter. The Net Profit after Tax from continuing operations decreased by 4.7% to Rs333cr, compared to the same period of previous year.
The company follows October-September financial year. For the quarter July-September of Financial Year 2020, new orders from continuing operations grew by 8.7% over the prior year and stands at Rs3,220cr.
After the annoucement of results, Siemens stock rose more than 6%. At around 9.28 am, the company stock traded at Rs1,439.55 up by Rs77.15 per piece or 5.66% from its previous closing of Rs1,362.40 per piece on the BSE.
The company said it has a strong order backlog of over one year’s revenue, partially on account of the period of lockdown in the country, which resulted in reduced revenues. The profit was impacted due to expenses incurred during the lockdown period amounting to Rs285cr.
At its Board Meeting held on Wednesday, the Board recommended a dividend payment of Rs7 per equity share of Rs2 each.
“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 now initial signs of an uptick across some market segments post lockdown. Increased Government spending in Infrastructure is critical at this time which will have a cascading impact for a sustained revival in Demand,” Sunil Mathur, Managing Director and Chief Executive Officer, Siemens Limited, said.
Our focus continues to be on profitable growth in our Energy, Industry, Infrastructure and Mobility businesses. We see increased interest in our Technological and Digitalization solutions across all our businesses and are working closely with our customers in these areas to support them by adopting the latest technologies, solutions and services,” Mathur added.