Engineering major, Siemens has recorded net profit of Rs 56.9 m in 1QFY2000, compared to a loss of Rs 222.9 m in the corresponding quarter last year.
Profit before Tax
Profit after Tax/(Loss)
Net profit margin (%)
The dramatic change in the company's fortunes can be attributed to the major restructuring drive which it undertook last year to stem losses. In 1QFY2000, the company's sales jumped 38.4% to Rs 2.2 bn. The company recorded net profit of Rs 56.9 m after posting loss of Rs 222.9 in 1QFY1999.
Improved net profit margins can be attributed to a sharp fall in interest burden to Rs 0.9 m from Rs 93.0 m last year. Depreciation was also down from Rs 85.5 m last year to Rs 82.2 m.
According to news reports in a leading financial daily, the company's order books position shows new orders worth Rs 2.4 bn - a 30% rise over last year.
The company is bullish about its prospects in infotech (IT) after spinning off the business into a separate subsidiary. The telecom business is also expected to propel growth.
Analysts are looking at Siemens favourably after its restructuring efforts. They have flagged a BUY on the company given the potential of its IT and telecom businesses.
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