The company recorded net sales of Rs 288.88 crore during the second quarter against Rs 164.9 crore in the first quarter, while half-yearly turnover dropped 11 per cent to Rs 453.8 crore. "The previous year's turnover was positively backed by sales arising from the Paguthan project in the power-generation business. Excluding this one-off large effect, the turnover registered a marginal increase," stated a company release.

Siemens managing director J Schubert said: "The results are in line with the anticipated trend and we expect to make a turnaround by the end of September."

The company received new orders valued at Rs 629.2 crore for the half year ended March 1999 against Rs 429 crore in the same period last year. "The growth drivers were primarily the power transmission anddistribution, projects and medical engineering businesses of the company," said the release.

The company's operating profit before interest and depreciation stood at Rs 25.9 crore, while gross profit after interest but before depreciation stood at Rs 22.5 crore. The company's other income from asset disposal stood at Rs 3.95 crore.

Total expenditure in the second quarter aggregated Rs 285.4 crore against Rs 172 crore in the previous quarter. The company provided Rs 9 crore for depreciation in the second quarter, while interest charges stood at Rs 3.38 crore.

The company's Y2K-compliance project, which has been undertaken with a total investment of Rs 6.5 crore, is expected to be completed in July. Siemens has already installed risk-management methodology for ensuring alternative supplies of materials and manpower in case of disruptions in the system.