Siemens Pakistan Reports Annual Loss Despite Revenue Growth

KARACHI: Siemens (Pakistan) Engineering reported a significant loss of PkR2.0 billion for the fiscal year 2024, a stark contrast to the profit of PkR970.8 million recorded in FY23. Despite an increase in revenue, the company faced challenges that contributed to the financial downturn.

According to a statement by AKD Securities Limited, Siemens Pakistan’s topline rose by 20% year-on-year, reaching PkR35.2 billion. This growth was largely driven by the smart infrastructure segment, which more than doubled its revenue from PkR4.3 billion in FY23 to PkR9.0 billion in FY24. However, the company reported a loss before taxes of PkR1.8 billion, citing reduced gross margins and unrealized losses on foreign currency derivatives as key factors.

The company saw new orders totaling PkR26.1 billion throughout the year. Energy division sales reached PkR25.5 billion, a 4% increase from the previous year. Smart infrastructure orders grew by 107% to PkR8.9 billion, and digital industries turnover rose by 72% to PkR3.1 billion. Siemens operates across the smart infrastructure, digital industries, and energy segments, which include power generation, smart grids, and industrial automation.

In a significant move, Siemens divested its energy division to Siemens Gamesa Renewable Energy for PkR17.8 billion, with the board approving this scheme in October 2024. The company also signed a contract with CDigital-HBCC JV to automate 27 barrages and establish a command center for the Indus Basin Irrigation System, aiming to improve water management efficiency in the region.

Additionally, Siemens Pakistan completed the KKI 500/220kV GIS Grid Station Project, a part of its 2022 contract with K-Electric. The project is a key component of the KANUPP-K-Electric Interconnection.

While Siemens Pakistan continues to benefit from a strong brand reputation and a robust order backlog, the company acknowledges challenges such as currency fluctuations and political instability risks.

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