Cummins India has announced its financial result for Q1 FY2024, with revenue of Rs 2,175 crore, up 31 percent YoY, and 15 percent higher compared to the previous quarter.
Domestic sales came at Rs 1,677 crore, up 43 percent YoY, exports at Rs 498 crore grew by 3 percent YoY. The net profit came at Rs 415 crore, which was 57 percent higher compared to the same quarter last year, but was flat compared to the previous quarter.
Ashwath Ram, MD, Cummins India said, “Indian economy continues to grow steadily despite global geo-political uncertainty, inflationary trends and demand fluctuations. This is evident through macroeconomic indicators such as robust GST and direct tax collections, Index of Industrial Production (IIP), Purchasing Managers’ Index (PMI). The government continues to focus on infrastructure development with higher budgetary allocations.
“RBI has kept the repo rates unchanged for the past 4-5 months, considering softening of inflation; though globally, the central banks have been increasing the lending rates, which is a sign of stability in prices in the Indian economy despite increase in demand across sectors. The global economic outlook continues to be mixed, given the inflation containment measures impacting demand.”
He added that Cummins India witnessed record revenue, driven by strong domestic and pre-buy demand considering CPCBIV+ emission changes effective July 1, 2023. The exports revenue was almost at the same level as the previous quarter.
Cummins well-positioned for future
With the revised guidelines on the implementation of CPCBIV+ and continued specific supply chain challenges, especially for certain electronic and other components, the company remains cautiously optimistic about the demand outlook for the near term and positive about the long-term growth prospects.
There have been recent changes in the CPCB IV+ norms’ implementation timeline; the Central Pollution Control Board has allowed the sale of CPCB II generator sets until June 30, 2024, with certain conditions.
Cummins India states it is fully prepared to meet the demand despite uncertainty in the next few quarters. Further, the geo-political and supply chain conditions continue to be unpredictable.
“The company is well-positioned to tackle challenges and leverage growth opportunities considering a strong balance sheet, continued prudent capital allocation and cost management. We remain optimistic about the prospects of the company’s continued profitable growth,” concluded Ram.
