Auto component and powergen major, Cummins India announced stable Q1 numbers. The profit for Q1FY25 is up 33% YoY but dropped sequentially, down 25% to Rs 420 crore. The total sales for Q1FY25 came in at Rs 2,262 crore, up 4% compared to the same quarter last year. Q1 domestic sales came in at Rs 1,873 crore while exports came in at Rs 389 crore.
The company, going forward is keen on investment in infrastructure (Public and Private) and broader economic growth 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.
Sequentially, even the sales numbers saw a relative drop. Speaking on the Q1 performance, Ashwath Ram, Managing Director, Cummins India said, “For the quarter ending June 30, 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.”
Commenting on the overall economy and its continued resilience despite global geopolitical uncertainties impacting
the business sentiment, he added that, “Indian economic outlook continues to be positive; tax collections are indicating the strength of underlying business activities. The latest Union Budget emphasized 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.”
Future plans
The company has a strong portfolio of CPCB IV+ emission norms-compliant products to meet customer demand across the entire product range. Cummins India is cautiously optimistic about the demand outlook for the near-term and optimistic about the long-term growth prospects. Regarding exports, the company is closely monitoring the results of geopolitical events unfolding in different parts of the world and their impact on global demand and supply chains.
