UPDATE: Siemens India January-March Net Profit Rises 11%
April 27 2012 - 07:45AM
Dow Jones News
Engineering company Siemens Ltd. (500550.BY) Friday said its net
profit for the fiscal second quarter rose 11%, as the Indian unit
of Siemens AG (SI) benefited from its backlog of orders.
Net profit for the January-March period rose to INR3.04 billion
from INR2.74 billion a year earlier.
Sales grew 24% to INR37.60 billion from INR30.36 billion.
Managing Director Armin Bruck said difficulties in getting coal,
land and environmental clearance and high interest rates have
slowed new projects by power and infrastructure companies, which
form Siemens's key client base.
Indian engineering companies are facing a tough time getting
orders in a climate of high interest rates and slowing economic
growth. Also, high prices of raw materials such as steel and other
metals as well as fuel are also eating into their margins.
"The confidence is still low in the markets we operate in,"
Bruck said in a statement.
He said higher cost and competitive pressures affecting pricing
of projects have dented the company's profit margin.
Siemens's total cost rose 23% in the past quarter to INR33.49
billion.
-By Prasenjit Bhattacharya, Dow Jones Newswires;
91-11-4356-3358; prasenjit.bhattacharya@dowjones.com