Siemens Q4 net profit surges on forex gains

MUMBAI, Nov 22 - Power equipment maker Siemens Ltd on Thursday reported a surge in net profit for the fourth quarter ending September aided by forex gains and profits from the sale of a subsidiary.

The company reported net profit of 3.1 billion rupees on net sales of 21.9 billion rupees, which rose 47 percent from year ago.

During the quarter it booked 1.5 billion rupees in forex gains, while the sale of its Information and Communication segment fetched 524 million rupees, Chief Financial Officer Patrick de Royer told reporters.

In the year to September it got new orders worth 101 billion rupees, most of it netted by its power business. The segment contributed 44 percent to turnover and the industry segment 27 percent.

At the end of September the outstanding order book was worth 94 billion rupees.

"I would like to have a similiar order growth in the current year as well, in order to sustain our growth target," Managing Director J. Schubert said.

In August Siemens AG Chief Executive Peter Loescher had said he aimed to double the sales of the Indian operations in the next three years.

The company plans to enter new sectors and geographies in India. "We will introduce new products and we will continue to participate in large infrastructure projects without compromising on profitability," Schubert said.

Exports contributed to 30 percent of revenues last year and the aim is to exceed that this year, Royer said.

Its German parent will be stepping up sourcing of products and services from India for the regional and global markets. "We are looking at industrial products and there is scope for other areas as well," Schubert said.

In order to add to the bottomline the strategy is to create low-cost products for India. "We need the right products for the local market, with the right features and cost position."

Shares in Siemens closed marginally down at 1,931.75 rupees in a weak Mumbai market.