Siemens reports Rs2.05bn loss amid surge in finance costs

November 29, 2024 (MLN): Siemens Pakistan Engineering Co. Limited (PSX: SIEM) suffered a massive loss of Rs2.05 billion [LPS: Rs248.34] for the year ended September 30, 2024, in contrast to the profit of Rs1.42bn [EPS: Rs248.34] made in the same period last year.

As per the profit and loss account, SIEM experienced a setback due to a massive spike in finance costs and losses on derivatives.

Ultimately, SIEM's stock price has seen a significant drop of 1.59% (as of 1:14pm PST).

According to the results, the company's top line grew by 19.8%, reaching Rs35.17bn, compared to Rs 29.35bn in the SPLY.

The cost of sales rose by 37.5% by a greater proportion which worsened the gross profit by 58.8% to Rs2.22bn in Q3 CY24.

Accordingly, the gross margins worsened to 6.3% as compared to 18.3% in SPLY.

During the period under review, other income rose 116.4% to stand at Rs30.39m in Q3 CY24 as compared to Rs14.05m in SPLY.

On the expense side, the company's administration expenses fell 33.1% YoY to Rs273.3m, and other operating expenses fell 93.3% YoY to Rs2.49m.

Meanwhile, marketing and selling expenses rose 35.5% YoY to Rs1.5bn,

The company’s finance cost surged by 590.6% and stood at Rs1.97bn as compared to Rs285.28m in SPLY, mainly due to higher interest rates.

On the tax front, the company paid a lower tax worth Rs234.36m against the Rs852.74m paid in the corresponding period of last year, depicting a fall of 72.5%.

Amount in thousand except for EPS

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