Engineering major Siemens Ltd, which today announced to secure an order worth Rs1380 crore from Adani Power, has posted a net profit of Rs225.5 crore for the quarter ended March 31, 2009, as against just Rs1.7 crore net profit booked last year for the corresponding period.
Sales for the quarter grew by 11 per cent to Rs2368.2 crore, compared to Rs2142.4 crore for the corresponding period in the previous year.
“We have achieved profitable growth in tough market conditions. Our focus on operational excellence and internal measures such as cost optimization and process rationalization supported the results. We also continued with our investment programs to support our growth,” said Dr Armin Bruck, managing director, Siemens.
The sales and profit figures are strictly not comparable to corresponding quarter of last year as the substantial completion of certain large projects has resulted in significant savings in estimated costs and consequential recognition of additional revenue and profits, said a Siemens press release.
In a market weighed down by deferred investments plans, the company booked new orders worth Rs 1859.4 crore for the quarter, 21 per cent less than the orders in the corresponding period of the previous year, said Siemens.
For the half-year period ended March 31 2009, new orders registered a drop of 10 per cent and stood at Rs3839.1 crore as compared to Rs4254.2 crore in the corresponding period last year.
For the half-year ended March 31, 2009, net profit for Siemens increased by 179 per cent to Rs556.1 crore as compared to Rs198.7 crore in the corresponding period of the previous year.For the half-year period, sales remained steady at Rs 3997.1 crore as compared to Rs4056.8 crore in the corresponding period last year.
Today Adani Power, part of Adani Group, awarded Siemens a contract to install a 500-kilovolt High-Voltage Direct Current (HVDC) transmission system of 2500 MW capacity to transmit electricity from over a distance of approximately 1000 kilometers from Mundra power plant in Gujarat to Mohindergarh in Haryana. The Rs1380 crore project will be executed together by Siemens AG, the German parent of Siemens India and the Indian arm. The first phase of the project is scheduled to be commissioned in February, 2011 and the second phase in July, 2011, said Siemens officials.
The project is to evacuate power from Adani Power's 4620 MW thermal power plant at Mundra in Gujarat.
Siemens scope of work for the project will include the turnkey execution of complete HVDC terminal stations at Mundra in Gujarat and Mohindergarh, Haryana, associated electrode stations and a repeater station mid way. The major scope of delivery covers 500 kV converter transformers, thyristor valves, filter equipments, switchgears and other mechanical auxiliaries. In addition Siemens will also undertake marine and inland transportation, civil works, installation and commissioning of the entire HVDC transmission system, said the officials.
APL is also developing a 1980 MW coal based thermal power project at Tiroda near Gondia in Maharashtra through its subsidiary, Adani Power Maharashtra Ltd. (APML). Additionally, APL is planning to develop two thermal power stations at Dahej and Kawai totaling to about 3,300 MW, said company officials at a press meet in Mumbai, today.