The Indian branch of Siemens AG, Siemens Ltd, on Thursday, reported a 39 per cent increase in quarterly profit due to a rise in infrastructure spending in India.
According to Reuters, the German engineering company added that its consolidated net profit for the quarter ended March 31 was 4.71 billion rupees ($57.59 million), compared to 3.40 billion rupees in 2022.
Along with other companies like ABB India Ltd and Larsen & Toubro Ltd, Siemens benefited from government spending on infrastructure projects such as railways, metros, and highways after a pandemic-induced pause.
During the quarter, the company secured new orders worth 311.51 billion rupees, including a contract for an electric locomotive project in Gujarat worth 260 billion rupees.
Siemens saw an increase in revenue in its smart infrastructure and energy segments, which together account for approximately 67.5 per cent of the total revenue. The company’s revenue from operations rose by 27.8 per cent to 48.58 billion rupees.
According to the report, Prabhudas Lilladher analysts in April expressed optimism about Siemens, citing the company’s broad portfolio, market position in digitalization and automation, and emphasis on product localization.
Speaking about the company’s revenue, the managing director and chief executive of Siemens, said, “ We continue to see substantial tendering by the Indian Railways and continued capex expansion in infrastructure led by Central Government spending.”
However, an increase in input costs, purchases of stock-in-trade, and project buy-outs resulted in a 26.3% rise in total expenses. On Thursday, the company’s shares closed at an all-time high of 3,797.05 rupees, up 2.2% from the previous day, ahead of the announcement of its financial results.
