Siemens has reported a 70 per cent decline in net profit at Rs 71 crore for the first quarter ended December 31, against Rs 238 crore logged in the same period last year.
Net sales were down 7.6 per cent at Rs 2,361 crore (Rs 2,556 crore).
Employee cost was up 19 per cent at Rs 252 crore (Rs 211 crore); raw material cost too was higher by 7.3 per cent from Rs 1,503 crore to Rs 1,613 crore.
Mr Armin Bruck, Managing Director, Siemens, said, “The performance of the company is below our expectations but is in parallel with the economic environment in the country over the past months, which has been challenging. We witness delays in financial closure of projects and caution in the decision-making process of our customers. However, recent developments like the higher IIP index for November 2011, lower inflation and easing of the credit rates by the RBI are pointing to better economic conditions.”
On Tuesday, the company scrip on BSE was down 1.19 per cent at Rs 731.20.