InvestorQ : Why did Siemens report a sharp fall in profits in the Mar-20 quarter?
NISHA Nayak made post

Why did Siemens report a sharp fall in profits in the Mar-20 quarter?

Answer
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5 months ago


Siemens reported 39% lower net profit in the Mar-20 quarter at Rs.172 crore. Overall revenues fell by 21% to Rs.2738 crore. Siemens also got hit by the COVID-19 impact as there was a slowdown in the business cycle and deferred off-take by clients. Siemens has an order backlog of Rs.12,547 crore. Siemens also took a hit on the prolonged weaker demand in large infrastructure projects. Siemens top management admitted that a gradual slowdown in customers and supply chain was visible in February itself. The lockdown resulted in all factories, project sites and offices being shut. Siemens has also guided that the lag effect could last for a few more quarters.