Cummins India PAT at Rs 420 cr in Q1FY2024
The Board of Directors of Cummins India (CIL), at their meeting, reviewed, and approved the financial results for the quarter that ended June 30, 2024.
Performance Highlights (based on standalone financial results) for the quarter ended June 30, 2024:
- Total Sales for the quarter at Rs 2,262 crore increased by 4% compared to the same quarter last year and were flat compared to the previous quarter.
- Domestic sales at Rs 1,873 crore increased by 12% compared to the same quarter last year and decreased by 3% compared to the previous quarter.
- Exports Sales at Rs 389 crore decreased by 22% compared to the same quarter last year and increased by 13% compared to the previous quarter.
- Profit before tax at Rs 551 crore was higher by 33% compared to the same quarter last year and lower by 21% compared to the previous quarter.
- Profit after tax at Rs 420 crore was higher by 33% compared to the same quarter last year and lower by 25% compared to the previous quarter.
Ashwath Ram, Managing Director, Cummins India, said, "Indian economy continues to be resilient despite global geopolitical uncertainties impacting the business sentiment globally. Indian economic outlook continues to be positive; tax collections are indicating the strength of underlying business activities. The latest Union budget emphasised the government’s continued focus on infrastructure development and continued higher budgetary allocation for infrastructure, special projects for end-to-end connectivity for ports, coal, steel, and fertilizer sectors. At the same time, internationally, geopolitical risks and conflicts continue to pose uncertainty about global trade and supply chain disruptions.
For the quarter ending June 30, 2024, CIL domestic revenue was driven by strong domestic demand from all segments especially from the industrial sector. Powergen revenue was expectedly softer considering the sunsetting of CPCB II norms on June 30, 2024. Exports revenue grew 13% over the prior quarter due to an improvement in demand from the end markets.
Future outlook
The investment in infrastructure (Public and Private) and broader economic growth continue to drive profitable growth for the company. For the Powergen sector, there is a complete switchover to CPCB IV+ emission norms-compliant products effective July 1, 2024. The company has a strong portfolio of CPCB IV+ emission norms-compliant products to meet customer demand across the entire product range. We remain cautiously optimistic about the demand outlook for the near term and optimistic about the long-term growth prospects.
Regarding exports, the company closely monitors the results of geopolitical events unfolding in different parts of the world and their impact on global demand and supply chains. With a diversified portfolio of products, the company remains optimistic about the export demand.
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