Siemens Ltd will carry on with its proposed Rs200 crore investment plans in India despite the current slowdown, its managing director Armin Bruck said at the company's annual general general meeting today.
For the year ended September 2008, Siemens Ltd has reported a 7 per cent increase in sales turnover, at Rs8,296 crore, from Rs7,727 crore in in the previous year. Net profit after tax remained steady at Rs593 crore, due to a rise in costs in certain large projects, the company said.
Siemens, however, saw its base business grow exceptionally well. Sales rose 21 per cent and orders rose 27 per cent while profits from operations vaulted 68 per cent, the company said.
Key drivers of Siemens' business in India were power, industrial solutions and services and automation and drives, Bruck said.
Replying to questions during the press conference, Bruck said fiscal 2007-08 has been quite satisfactory in terms of growth and the company was looking at 2008-09 with cautious optimism. He said the company expected equal growth for all sectors in which it operated in the current fiscal.
Replying to a question regarding payment delays in the current scenario, he said this was only a natural and continued to present some challenges for the company. He added the company will be extremely cautious on this aspect.
When queried about the impact of the current crisis on Siemens software operations, he said the software division was a captive unit that caters to Siemens group companies and was not affected by the downturn.
Regarding the status of the order book, Bruck declined to quote figures but said they have a very comfortable order position.
P de Royer, executive director, Siemens Ltd, said the company has a very comfortable liquidity position and, with more than Rs900 crore in liquid assets, he does not see any need for the company to go to the market to raise funds.