In the third quarter all figures seem to be looking up. Sales have moved up by 18 per cent to Rs 206.82 crore against Rs 175.28 crore last year. Operating profit is up at Rs 18.77 crore compared to Rs 5.83 crore last year. Similarly gross profit has jumped to Rs 12.52 crore compared to a loss of Rs 10.13 crore earlier.

"The growth drivers were primarily the power transmission and distribution systems and projects businesses," said managing director J Schubert at a press conference. The company has attributed the good performance to its restructuring programme. "Though this is an ongoing process, the major decisions have alreadybeen implemented," he said. The company's order book is valued at Rs 955.7 crore for the nine months ended June compared to Rs 585.9 crore worth orders during the corresponding period last year.

The company has planned rights equity issue, which would raise Rs 142 crore. The issue slated in mid-September would be used primarily for redeeming preference shares totalling Rs 107 crore.

Siemens will issue 7,099,250 shares at a price of Rs 200 per share (including a premium of Rs 190 per share) in the proportion of one share for every four shares held.

"Following the rights issue, Siemens AG's stake in the company could go up to 60.80 per cent from the current 51 per cent," Schubert said.

Siemens is one of the leading manufacturers of electrical and electronic equipment catering to power generation, transmission and distribution. It also makes process control automation, telecom and medical diagnostics.

Insight

All set to grow

A positive bottomline for the third quarter has been theresult of all round improvement in Siemens' operations. A robust turnover growth, higher other income and a substantial reduction in interest costs have helped in the company's turnaround. The reversal in the company's fortunes has come well before the management target of September 1999. As for the future, Siemens has a strong order book position that should aid topline growth. With the restructuring already over, the company is all set to grow.

--Shishir Asthana