Siemens net profit surges 70% to ?802 crore; Board nod for demerger of energy business

Siemens announced robust financial results for the second quarter of the fiscal year (Q2SY24) on Tuesday, May 14. The global electronics and electrical engineering firm follows the October–September financial year.
Siemens reported a net profit of ?802.5 crore in the January to March quarter, marking a significant increase of over 70% from ?471.4 crore in the same quarter last year. A CNBC-TV18 poll estimated net profit at ?571 crore.
Siemens revenue surged 18.4% to ?5,749.9 crore in Q2SY24 compared to ?4,857.8 crore in the previous year's first quarter. The CNBC-TV18 poll estimated profit at ?5,544 crore.

The Siemens board has also approved the demerger of its energy business into a separate entity.

The energy business will operate under the name Siemens Energy India, which will be established as a listed legal entity.

Shareholders will receive one share in Siemens Energy for every share held in Siemens.

Siemens Energy unveiled sweeping changes at its struggling wind division on May 8, including job cuts and a new CEO, tightening its grip on a loss-making business as the provider of power equipment emerges from its biggest crisis to date, according to a Reuters report.

As part of the changes, which will include unspecified job and capacity cuts, board member Vinod Philip will become the new CEO of wind turbine unit Siemens Gamesa from August, the group said, adding it was time for a generational change, the report added.
Shares of Siemens settled 1% higher at ?6,690 on the National Stock Exchange.