Siemens reported a 77 per cent drop in net profit at Rs 36 crore (Rs 155 crore) for the third quarter ended June 30. Profitability was impacted through increased project costs and unbooked profits due to customers’ delaying offtake, said Armin Buck, Managing Director. Net sales was up marginally at Rs 2,793 crore (Rs 2,748 crore). EBITDA margins came down six percentage points to three per cent. Manpower cost was up 20 per cent at Rs 278 crore. “Due to the uncertain economic environment coupled with high interest rates, our customers, across all our businesses, are experiencing a drop in capital expenditures. While our short-cycle business has remained stable, the volumes in our long-cycle project business have declined,” he said. A comparison of the profits for past periods was also vitiated by the fact that the profits in those periods include adjustments arising out of revisions in revenues and costs related to ongoing projects, a company statement said.

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