Siemens reported a 10 per cent year-on-year growth in order inflows during the quarter ending December 31, 2023.
In a release, Siemens said that it received new orders worth Rs.5,971 crore during the October-December quarter of FY24. This marked a 10 per cent increase over the comparable level during the previous year.
Driven by energy business
According to Sunil Mathur, Managing Director & Chief Executive Officer, Siemens Ltd, “While strong revenues came in from our Digital Industries, Smart Infrastructure and Mobility businesses, our order income growth came from our Energy business driven primarily by our Transmission business. There was a decline in New Orders in our Digital Industries Automation business on account of destocking following normalization in demand. We expect this to normalize from Q3 onwards. Capex demand across segments, largely driven by Capex spending in Public Infrastructure, continues to be good. Private Capex is also beginning to pick up.”
It may be noted that Siemens’ accounting year runs from October 1 to September 30. The quarter ending December 31, 2023 (October 1, 2023 to December 31, 2023) therefore represents the first quarter (Q1) of the company’s ongoing financial year FY24 that will end on September 30, 2024.
New subsidiary incorporated
Siemens Ltd also formally announced that on February 7, 2024, the company incorporated a wholly-owned subsidiary called “Siemens Energy India Ltd.” The new subsidiary has been incorporated to potentially house the energy business of Siemens Ltd, if demerged.
It may be recalled that on December 18, 2023, Siemens Ltd announced that certain promoters of the company, namely Siemens Aktiengesellschaft, Siemens International Holding BV, Siemens Energy Holding BV and Siemens Energy Aktiengesellschaft, have each requested the board of directors of Siemens to consider, evaluate and thereafter start taking exploratory steps towards a potential demerger of the company’s energy business into a separate entity.
The board of directors of Siemens Ltd then approved the immediate incorporation of a wholly-owned subsidiary in Mumbai on the basis that the proposed subsidiary may be required if and when the board of directors of Siemens decides to implement the aforesaid demerger.
Also read: Siemens To Incorporate WoS For Potential Demerger Of Energy Business
Featured photograph (source: Siemens) is for representation only.
