Margin pressures take the sheen out of Siemens' results

Rex Mathew
28 November 2006

For the quarter ended 30 September 2006, Siemens India has reported a standalone net profit of Rs136.75 crore - an increase of 30.91 per cent over Rs104.46 crore reported for the same quarter of previous year. Standalone net sales revenues for the quarter increased 59.91 per cent to Rs1,491.98 crore from Rs933.01 crore.

Operating profits, excluding other income but including other operating income, on a standalone basis went up 34.27 per cent over the previous year quarter. Operating margins as a percentage of net sales revenues declined to 8.34 per cent from 9.94 per cent for the same quarter of previous year.

Input costs went up by a substantial 67.4 per cent over the previous year quarter. Staff costs jumped 79.43 per cent while other operating expenses increased 26.4 per cent.

Other income, excluding other operating income, increased modestly by 8.1 per cent to Rs63.67 crore. Interest income went up substantially to Rs11.61 crore from Rs3.24 crore. Depreciation charges increased 30.59 per cent while tax provisions increased 23.8 per cent over the previous year quarter.

For the financial year ended 30 September 2006, Siemens has reported a net profit of Rs360.11 crore on a standalone basis - an increase of 41.36 per cent over the previous year figure of Rs254.75 crore. Net sales revenues for the year increased 64.1 per cent to Rs4,510.35 crore from Rs2,748.48 crore.

Operating profits, excluding other income, went up by 42.99 per cent over the previous year. Operating margins as a percentage of net revenues declined to 8.96 per cent from 10.28 per cent for the previous year.