Siemens Limited reported a sharp fall of over 37% in its net profit for the March 2024 quarter, mainly due to rising costs and lower absorption of fixed expenses in its Digital Industries business. The company’s net profit dropped to ₹408 crore, down from ₹649 crore in the same period last year.
At 9:18 AM, Siemens' share price was up 1.55% and was trading at ₹2,962.00.
The company explained that the fall in profit was because of higher material costs and under-absorption of fixed costs in the Digital Industries segment. These challenges reduced its overall profit from operations.
Siemens also pointed out that the profit in the previous year’s quarter had received a boost from a one-time gain of ₹192 crore from selling property. In comparison, this quarter had an extraordinary expense of ₹63 crore related to the company’s ongoing demerger process.
Revenue for the March quarter stood at ₹4,259 crore, which is only slightly higher than the ₹4,152 crore reported in the same period last year. The company said that this was due to a normal slowdown in the Digital Industries business and regular project schedules in the mobility segment.
Despite the fall in profit, Siemens recorded strong growth in new orders. Orders rose 44% to ₹5,305 crore from ₹3,697 crore a year ago. This jump was driven by strong public infrastructure spending in its Mobility and Smart Infrastructure businesses.
While the overall environment is challenging, the company is motivated by the rise in public capital spending. However, its Digital Industries business is still seeing slow demand due to muted private investments.
As private capital expenditure grows both in India and globally, the need for digitalisation and automation will increase. These are key to the company’s long-term growth plans.
While Siemens faced pressure on profit due to higher costs and one-time expenses, strong order growth and a steady revenue base indicate a stable future. The company remains optimistic about increased demand as private CapEx picks up.
Read more on: Check Key Details of the New Board of Directors for Siemens Energy India.
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Published on: May 14, 2025, 9:32 AM IST
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