Cummins India Ltd on Wednesday posted fiscal fourth quarter consolidated profit at Rs 348.91 crore, up 61.3 per cent from Rs 216.27 crore in the same quarter last year. It clocked revenue from operations at Rs 1933.85 crore, up 28.7 per cent as compared to Rs 1502.12 crore in the fourth quarter of FY22. Total sales for the quarter was at Rs 1897.45 crore compared to Rs 1477.27 crore in the corresponding quarter last year. The Board also recommended a final dividend of Rs 13 (650 per cent) per equity share of face value of Rs 2 each for the financial year ended March 2023. This is in addition to the interim dividend of Rs 12 per share declared on February 08, 2023. The dividend warrants for the said final dividend will be dispatched by August 29, 2023 and the dividend will be paid on August 31, 2023, the company said in a regulatory filing.
Based on standalone financial results, total sales for the quarter was at Rs 1,889 crore, up 29 per cent compared to the same quarter last year and decreased by 12 per cent compared to the previous quarter. While domestic sales were at Rs 1,396 crore, export sales were at Rs 493 crore.
For the year ended March 31, 2023, Cummins India reported record revenue for the second financial year in a row, driven by strong domestic and export demand. This, coupled with pricing actions and prudent cost management, resulted in a record profit for the year, it said. However, Ashwath Ram, Managing Director, Cummins India Limited, said, “Given the emission changes from July and continued supply chain challenges, especially for specific electronic and other components, we remain cautiously optimistic about the short to medium-term demand outlook.”
He further stated that while the Indian economy continues to be resilient amidst inflationary economic conditions, rising interest rates, and ongoing geo-political crises, fiscal and monetary policy measures are conducive to sustaining the economic growth rate. “With softening commodity prices, stable consumption provides optimism for sustaining the economic growth rate of the Indian economy. Government spending on infrastructure promotes various segments, resulting in better capacity utilization and early signs of private capex,” he said.
The CPCB IV+ norms will become effective July 1, 2023, for gensets up to 800 kW. “The company is ready with its products to meet the new emissions norms and is confident of offering the best-in-class products to its customers which will continue to deliver superior performance and meet the new emission norms,” said Ashwath Ram.
“Though the Company is well positioned to tackle any challenges with its strong balance sheet and prudent investments in technology, considering the uncertainty, it will not provide any guidance for FY’24 at this time,” he concluded.