Siemens Sees Surge in Orders Despite Profit Dip

Siemens reported a net profit drop to Rs 408 crore in March but saw a surge in new orders by 44%. The decline is attributed to higher materials costs and a strategic focus on Mobility and Smart Infrastructure, despite an extraordinary gain from property sales earlier in the fiscal year.

Siemens reported a significant decline of over 37% in its net profit, amounting to Rs 408 crore for the March quarter. This decline is primarily due to the under-absorption of fixed costs and increased material costs within its Digital Industries sector.

The company operates on an October to September fiscal calendar. Despite the decrease in profit, Siemens experienced a 44% surge in new orders, climbing to Rs 5,305 crore, indicating robust growth driven by the Mobility and Smart Infrastructure sectors amidst challenging economic conditions.

Managing Director and CEO Sunil Mathur noted that while Digital Industries faced challenges due to subdued private Capex spending, the company's intrinsic profitability still aligns with its growth ambitions, highlighting technology's critical role in sustainable industrial and infrastructure expansion.

(With inputs from agencies.)