SIEMENS-Software Centre for Exports

Software Centre for Exports SIEMENS has turned in good results for 198788, Sales have amounted to Rs 223- crore against Rs 198 crore in the previous year and gross profit is Rs 20.65 crore against Rs 18.18 crore. Net profit is Rs 6.77 crore against Rs 5,20 crore. Dividend is maintained at 16 per cent on the enlarged capital and is still covered 2.04 times by ear- nings as against 2.40 times previously. The company would have turned out even a better performance on the turnover front but for the fact that the new electronics factory set up at Nashik, after having commenced operations in November 1988, achieved its- normal production rhythm only in the later part of the financial year. The company entered into a new wage agreement with its employees entailing additional cost burden of Rs 34 million. Inflation in other costs in the range of 9 per cent and the continuous weakening of the rupee vis-a-vis the major currencies increased costs further. Nevertheless, the company was able to absorb cost escalation and yet maintain profitability at a reasonable level. The company has a higher order backlog of Rs 1,820 million carried over which should help to achieve further growth in turnover in the new financial year.