• APRIL 29, 2000

Siemens shows dramatic turnaround

Siemens Ltd is engaged in engineering, power and a range of other diversified related companies.

It is a subsidiary of Siemens AG and has shown a remarkable recovery from incurring losses.This has been mainly achieved by hiving off the company's telecom business, selling surplus land to retire debt and reduce interest burden and implementing a scheme of voluntary retirement scheme for its workers.

These cost control measures have yielded rich dividends for the company by posting healthy profits. The other strategy has been to concentrate on high revenue areas.The company has recently bagged a major power project estimated to cost Rs 8.3 bn which will considreably add to the bottomline . The current months will see brighter prospects for the company.

(Rs m) HY1999 HY2000 Change
Sales 4,537 4,942 9%
Other Income 257 382 49%
Expenditure 4,576 4,797 5%
Operating Profit (EBDIT) (39) 145 -472%
Operating Profit Margin (%) -0.9% 2.9%  
Interest 127 17 0%
Depreciation 147 153 4%
Profit before Tax (56) 357 -738%
Other Adjustments - -  
Tax - -  
Profit after Tax/(Loss) (56) 357 -738%
Net profit margin (%) -1.2% 7.2%  

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