Siemens quarterly profit climbs 11%

Diversified group Siemens today reported 11% rise in profit after tax to Rs 304 cr.

Diversified group Siemens today reported 11 per cent rise in profit after tax to Rs 304 crore in three months ended March 2012,but cautioned that “confidence” is low in the markets where it is operating.

The entity had a profit after tax of Rs 274.3 crore in the year-ago period.

In the 2012 March quarter,sales jumped to Rs 3,760.1 crore from 3,036.1 crore in the same period a year ago,the firm said in a regulatory filing.

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Siemens is the flagship company of German conglomerate Siemens AG in India.

“The confidence is still low in the markets we operate in. New orders have seen deferred due to combination of factors: coal linkages,land and environment clearances,higher interest rate,tighter liquidity and lower investments in the infrastructure sector,” Siemens Managing Director Armin Bruck said.

“Margins have been affected due to higher costs and ongoing price pressures,” Bruck noted.

In the 2012 March quarter,the company received orders worth Rs 1,807.2 crore.

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The firm has presence in energy,healthcare and infrastructure sectors,among others.

Siemens has started the process of amalgamating into itself Siemens Power Engineering Pvt Ltd — a wholly-owned subsidiary of Siemens AG.

“The amalgamation will provide greater economy of scale and operational synergies,” the filing said.

Siemens AG holds 75 per cent stake in Siemens Ltd.