SIEMENS (PAKISTAN) ENGINEERING COMPANY LTD.

S.KAMAL HAYDER KAZMI,
Research Analyst
, PAGE
July 13 - 19, 2009

Siemens (Pak) Engineering Company Ltd is principally engaged in manufacturing, installation, and sale of electronic and electrical capital goods. Siemens Eng holds majority shareholding in Carrier Telephone Industries (Pvt) Ltd. It is incorporated in Pakistan as a public limited company and its shares are quoted on all the stock exchanges of Pakistan. Its major business divisions involve communications, power transmission and distribution, industrial solutions and power generation, automation and drives, medical transportation and appliances, and finance and business administrations.

Siemens has penetrated well in the UAE market of transmission and distribution, despite intense competition. Its major orders include high voltage grid stations to be constructed in Dubai, orders for transformers and switchboards, SAP software implementation for Pakistan Telecommunication Company Ltd, some major orders from mobile operators, New Murree Bulk Water Supply Project, and KESC operation and management contract etc.

FINANCIAL RESULTS

FINANCIAL RESULTS
(Rs. in Thousands)

INDICATORS

SIX MONTHS PERIOD

MARCH 31, 2009 MARCH 31, 2008
Net sales 19,028,128 11,753,767
Cost of sales 17,116,524 10,093,661
Gross profit 1,911,604 1,660,106
General administration expenses 219,342 239,193
Other operating income 1,885 198,441
Operating Profit 996,384 1,047,973
Profit before tax 533,861 1,038,565
Profit for the year 369,108 710,478
Basic and diluted EPS (Rs) 44.76 86.15

The financial results show the company key performance structure. The current financial crisis has also affected its business particularly in the UAE. Over Rs 8.2 bn have been received during the six months of the current financial year. Major contributions include supply of power and distribution transformers to power distribution companies in Pakistan, supply of hospital equipments, a project for mechanical, electrical and instrumentation services, and a project for building 220 KV grid station. The sales have increased by 62 percent when compared to the corresponding six months period to just over Rs 19 bn mainly due to the projects being undertaken in the energy sector particularly in the UAE. The profit after tax decreased by 49 percent in absolute terms and decreased from 9 to 3 percent of sales as compared to the corresponding period. This was mainly due to the exchange rate fluctuations.

POWER & DESALINATION COGENERATION PLANT

Pakistan's first Power & Desalination Cogeneration Plant was set up in DHA, Karachi, which has a 94MW (ISO) combined cycle power and a 3 mn gallons per day desalination plant. The desalination plant is a joint venture between DHA Cogen Ltd (DCL) and Messers Sacoden (Pvt.) Ltd. from Singapore and its associates. The plant consists of a gas turbine, heat recovery boiler, steam turbine and two desalination units, which will produce desalinated water through thermal/evaporative process. The desalination plant employs modern multi effect desalination (MED) evaporation technology, which makes the operating procedures highly efficient.

SIEMENS IN KSE ON JUNE 2009

DATE OPEN RATE CLOSING RATE
1 969 999.99
2 999.99 989
3 989 970
4 970 984
5 984 1031
8 1031 980
9 980 1010
17 1010 1024
18 1024 1019
19 1019 1050
22 1050 997.5
23 997.5 997.5
24 997.5 1025
25 1025 1020
26 1020 1020
30 1020 1018
Various Sources

PRODUCTS, SOLUTIONS AND SERVICES

Siemens Industrial Complex located in the heart of Karachi's industrial hub Sindh Industrial Trading Estate is a sprawling 96,500 square meters that houses not only five factories producing motors, diesel generating sets, switchboards, transformers and the recently added factory that will produce for the first time 220 KV power transformers in Pakistan but also the head office of the company.

POWER GENERATION PRODUCTS

Siemens state of the art technology in electrical power generation offers best levels of availability, reliability, and efficiency ensuring high returns on investment to the sponsors and developers. As a global leader in the power industry, Siemens is committed to establishing a comprehensive, long-term partnership with customers and ensures full backup supports of spare parts and services to the highest comfort level of the customer. The main products of Siemens Power Generation are Gas Turbines & Power Plants, Steam Turbines & Power Plants, and Compressors.

SOLAR SYSTEMS

Siemens has installed complete solar systems in all parts of the country, mainly for house electrification, telecommunication, water pumping, navigation, highway communication, oil & gas fields, and street lighting. Siemens offers complete solution for all needs of energy.

FUTURE OUTLOOK

Siemens Pakistan currently depicts a healthy outlook with major contributions coming from projects for building grid stations for various customers in Dubai and supply of power and distribution transformers to power generating companies. Siemens Company intends to further increase its local presence and strengthen its manufacturing facility with a plan to acquire Heavy Electrical Complex (HEC), which has been offered for sale by the Government of Pakistan under its privatization policy.