Siemens Healthcare Q2 Results 2008

Siemens Healthcare Diagnostics which is a subsidiary of its parent company in Netherlands, for the year ended 30th September 2008 reported a net loss. The figures for the year ended September 30, 2008 are not comparable with the year ended September 30, 2007, in view of the acquisition of business from Dade Behring Diagnostics India Pvt Ltd (´Dade Behring´) w.e.f. August 01, 2008 and the year 2007 was of nine months. It acquires the New Delhi-based Dade Behring Diagnostics for Rs 45.10 crore.

So for the year, the company reported a net loss of Rs.2.26 crore as against net profit of Rs 3.78 crore during the previous year ended September 2007. Sales rose 89.54% to Rs 102.16 crore in the year ended September 2008 as against Rs 53.90 crore during the previous year ended September 2007.

Despite the losses in the FY 2007-08, the Board of Directors have recommended a final dividend of 10% for the year, which is permissible under Companies (Declaration of Dividend out of Reserves) Rules, 1975.

The company has a very low equity of Rs.1.57 crore and of this 68.73% is held by the promoter company. Despite the losses, the stock has gone up to Rs.410, from the Rs.340 levels it was at last week. And this shows that investors have the faith in the largest clinical diagnostics company in the world. Its all the initial integration problems which has led to the loss, and it should be able to return to profits from next year.
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