Cummins India Limited recorded its second quarter profit for the financial year 2023-24 at Rs 329.09 crore, up 23.1 per cent in comparison to Rs 267.31 crore during the second quarter of FY23. It posted revenue from operations at Rs 1921.55 crore, down 1.7 per cent as against Rs 1955.28 crore during the quarter ended September 2022. While the total income posted by Cummins India was at Rs 2011.35 crore, it incurred a total expenditure of Rs 2026.26 crore.
“The Indian economy remains resilient to geopolitical events, softening demand in developing economies, and inflationary trends both in India and worldwide. GST collections continue to remain strong, indicating underlying trade activities. Index of Industrial Production (IIP), PMI, etc., are indicating a reasonably stable economic outlook. The impact of deficient and uneven monsoons on the economy, especially the rural economy, is yet to play out fully. With the stable fiscal and monetary policies, the Govt’s continued emphasis on infrastructure development, and PLI led capex is keeping the Indian economy on course for growth in the range of 6.3 per cent to 6.8 per cent based on various estimates. Geopolitical events, especially further escalation of conflict in the Middle East, fluctuations in crude oil prices, rising US Bond yields, and their impact on capital flow are a few key watchouts,” said Ashwath Ram, Managing Director, Cummins India Limited. Cummins India, he added, continues to execute its profitable growth strategy and is well-positioned to meet the demands of its end markets.
On a standalone basis, total sales for the quarter came in at Rs 1871 crore, down by 3 per cent on-year. While the domestic sales was at Rs 1364 crore, down 2 per cent on-year, Cummins India recorded exports sales at Rs 507 crore, down 4 per cent YoY.
The company launched the CPCB IV+ emission norms-compliant products in the market on time. The previous two quarters, it said, witnessed some demand shifts as both CPCB II and CPCB IV+ products are allowed to be sold till June 2024. “We expect the demand to normalize and sustain for the rest of the year. With most of the developed market experiencing slowing demand, we are closely monitoring our end market conditions. Although the geo-political events, ongoing conflicts, and their impact on supply chain conditions continue to be unpredictable, the company is confident and well-prepared to tackle challenges,” it said in a statement.
Cummins India continues to have prudent capital allocation and cost management and has a strong balance sheet and cash position. “We remain optimistic about the company’s prospects for continued profitable growth,” it said.