Engine supplier major Cummins India has announced its financial results for Q3 FY2024.
In Q3, the revenue came at Rs 2,502 crore, up 17 percent YoY, of which domestic sales contributed Rs 2,177 crore, up 36 percent, while exports came at Rs 325 crore, down 40 percent YoY. The profits came at Rs 455 crore, up 26 percent YoY.
Ashwath Ram, MD, Cummins India said: “The world’s major economies are dealing effectively to cool down inflationary trends and maintain growth rates. The continued geopolitical risks and resolution of conflicts will likely take longer, posing continued uncertainty about global trade. Recent conflicts impacting trade routes have caused increased freight costs and lead time for supplies. Amidst these uncertainties, the Indian economy is holding up well on the back of strong domestic demand and continued government spending, notably on infrastructure. The recent Interim budget proposing higher allocation for capital expenditure augurs well for the Indian economy.”
“The company recorded the highest quarterly revenue and profits based on robust domestic demand and is well-positioned to support domestic and export demand. The company has a strong liquidity and financial position to support its operations and growth plans,” he added.
Looking forward, it sees the investment by India in infrastructure continues to bode well for the company.
The powergen market is expected to see a demand shift with an increasing focus on CPCB IV+ compliant products. However, upcoming quarters are likely to see mixed demand for CPCB II and CPCB IV+ products, as CPCB II products are allowed to be sold till June 30, 2024.
Global economic conditions remain uncertain as the world is witnessing geo-political tensions, inflationary trends, etc.
Ram maintains an optimistic outlook for domestic demand as it is expected to contribute to sales and profitable growth for the company, though exports in near term may be impacted due to the global economic uncertainties in the short/medium term.
However, Cummins India is confident on its product portfolio and is striving for recovery in exports. The company states it continues to be well positioned with a strong brand, world class manufacturing infrastructure on ground and a best-in-class service organisation with unparalleled reach throughout the country and neighbouring regions.
