International BusinessSiemens to merge its two Indian public listed firms
The Siemens Group is planning to amalgamate its listed company, Siemens Healthcare Diagnostics Ltd (SHDL), with its flagship Indian business, Siemens Ltd.
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The board of directors of Siemens Ltd will consider the proposal on Monday, the company announced today.
“The Board has to discuss the details and we are not in a position to comment,” said Armin Bruck, managing director of the Rs 8,796-crore Siemens Ltd.
SHDL had sales of Rs 165.4 crore for the year ended September 30 and a net profit of Rs 5.3 crore. Siemens AG’s wholly owned subsidiary, Siemens Diagnostics Holding of Netherlands, holds 68.73 per cent in SHDL and the other shares are with the public. Siemens is mainly into the industry automation, energy and health care business in India. It has 19 legal entities in the country, employing 16,800 people, with group revenues of over Rs 12,000 crore.
Only Siemens Ltd and SHDL are public-listed companies in India.
SHDL’s shares rose to a 52-week high of Rs 1,353 today on the Bombay Stock Exchange (BSE), to close at Rs 1315.15. Siemens Ltd’s shares fell 2.9 per cent to close at Rs 546.90.
“The restructuring happening at the local level in the recent past is aimed to tide over the difficult business environment and to optimise the synergies of various companies of Siemens operating in India, for better efficiencies and cost management,” said Sunil Mathur, executive director and Group Financial Officer.
Results announced
The Company’s net profit rose by 17.53 per cent to Rs 704.60 crore for the year ended September 30, from Rs 599.54 crore in the corresponding previous year period.
The increase in profit is mainly due to an increase in exceptional income of Rs 205.94 crore gained by divesture of Siemens Information ystems and Siemens Information Processing Services, two subsidiaries of the company to the German parent Siemens AG.