Cummins India standalone PAT rises by 50% to Rs 360 cr in December quarter

Engine manufacturer Cummins India standalone profit after tax rose 50 per cent to Rs 360.14 crore in the December quarter of 2022-23 over the same period last year.

Cummins India had recorded a profit of Rs 240.97 crore in the third quarter of financial year 2021-22.

Total sales for the quarter were Rs 2,144 crore, growing 26 per cent over the total sales of Rs 1,700.67 in Q3FY22.

The company said the domestic sales were up 27 per cent at Rs 1,603 crore compared to the same quarter last year while exports sales stood at Rs 541 crore during the reporting quarter, registering an increase of 23 per cent against the same period of the previous fiscal, it said.

For the quarter ended December 31, 2022, the company reported record quarterly revenue driven by strong domestic and export revenue coupled with prudent cost management resulting in record quarterly profit, said Ashwath Ram, Managing Director, Cummins India.

We continue to see supply chain challenges, especially for specific electronic and other components. With geopolitical risk and inflation likely to slow down developed markets, we remain cautiously optimistic about the short-to-medium-term demand outlook, he said.

On the outlook, Ram said the recent budget announced by the Government has a stronger outlay for the infrastructure sector, including railways, which is expected to create strong demand from various segments in the domestic market.

India will reach a significant milestone in the power generation segment which will transition from CPCB II to CPCB IV+ emission norms from July 1 this year. The Central Pollution Control Board has allowed the sale of CPCB II generator sets till December 31, 2023, post which the power generation market will evolve based on the new emission norms, he said.

Further, the geo-political and supply chain conditions continue to be unpredictable. Though the Company is well-positioned to tackle any challenges with its strong financial position, considering the uncertainty, it will not provide any guidance for FY' 24 at this time, Ram stated.

The demand momentum we saw in the earlier quarters continued across segments, including international markets during the quarter. With moderation in commodity costs, oil, and other industrial raw materials coupled with easing inflation, the buoyant tax collections economy continues to sustain growth momentum, he said.

CIL services a broad spectrum of the economy and it sees continued demand from end- markets like data centers, commercial real estate, rental, infrastructure, healthcare, and telecom, among others.