Nokia Siemens India revenue dips 19 percent at 737 million euro

Nokia Siemens India revenue dips 19 percent at 737 million euro
Telecom gear maker Nokia Siemens Network has reported 19.1 percent decline in net sales from India at Euro 737 million (about Rs. 5,192.57 crore) for the year ended December 31, 2012 due to lower spending by operators.

The company had registered net sales of Euro 911 million from the country in 2011.

NSN has reported 2 percent decline in overall revenue at 13.37 billion euro in 2012, compared to 13.64 billion euro in 2011 despite divestments and restructuring plans.

NSN registered highest revenue growth in Japan followed by North America and Asia Pacific region.

The company said "Positive developments were partially offset by decreases in net sales in India and Greater China as a result of reduced operator spending."

The overall operating loss of NSN at the global level ballooned to Euro 741 million in 2012, compared to operating loss of Euro 209 million in 2011.

NSN said wage inflation in China and India were among the components that impacted its profitability.

"Overall, since 2010, we have reduced component costs as a result of annual purchase price negotiations. During that period we have also experienced some wage inflation, particularly in China, where the rising cost of prices for goods such as food has driven inflationary pressure in salaries. Similar pressures are evident in India," NSN said.

"Five businesses have been divested, with two more divestments ongoing. We have exited multiple poorly performing contracts and ceased from active business in several countries," the company said in its annual report.

In November 2011, NSN had set goal of delivering Euro 1 billion cost savings and reduce head count by 17,000 globally. NSN said it narrowed its regional focus to make the high value and technologically advanced Japan, South Korea and USA its priority countries and to review certain under-performing countries or contracts with a view to exiting if necessary.

"At the same time, the Group announced its intention to reduce its workforce by 17,000 employees by the end of 2013."

At the end of 2012, NSN reported 58,411 employees across the globe, including 10,192 employees in India.

During 2012, NSN said that it decreased indirect spending by a fifth, reduced our real estate footprint by approximately 4 lakh square meters and internal headcount down by approximately 20 percent.


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Further reading: Nokia, Nokia Siemens Network, telecom
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