Cummins India Q2 PAT Down By 11% At Rs 183 Cr

The Board of Directors of Cummins India Limited, at their meeting, took on record the unaudited financial results for the quarter and half year ended September 30, 2019.

Net sales of the Company for the quarter ended September 30, 2019, at ₹ 1,285 Cr, declined 11% as compared to ₹ 1,452 Cr recorded in the same quarter last year and 2% compared to ₹ 1,316 Cr recorded in the preceding quarter. Net sales for the half-year ended September 30, 2019, at ₹ 2,601 Cr declined 5% over the same period last year’s sales of ₹ 2,748 Cr.

Domestic sales in the current quarter at ₹ 947 Cr declined 6% over the same quarter last year and 4% compared to the preceding quarter. Domestic sales for the half-year ended September 30, 2019, at ₹ 1,937 Cr grew 4% over the same period last year. Exports for the current quarter at ₹ 337 Cr declined 25% over the same quarter last year however improved 3% over the preceding quarter. Exports sales for the half-year ended September 30, 2019, at ₹ 664 Cr declined 25% over the same period last year.

Profit before tax in the current quarter at ₹ 210 Cr is 29% lower as compared to ₹ 298 Cr recorded in the same quarter last year and 8% higher as compared to ₹­­ 194 Cr recorded in the preceding quarter.

Ashwath Ram, Managing Director, Cummins India Limited, said, "The current sluggishness in the Indian economy arises from several factors including the prevailing liquidity situation, delays in awarding of infrastructure projects, banking sector including the shadow banks continuing to sort through their funding constraints. These factors have all resulted in reduction in demand across our key segments in the domestic business. In our estimation this is likely to play out further for some time with a gradual revival thereafter. The Government has already undertaken significant actions to boost the economy, including allocating incremental funds to the execution of infrastructure projects, easing out liquidity as well as a reduction in the corporate tax rate, accompanied by interest rate cuts. We continue to be positioned to outperform in our industry and continue investing judiciously in product enhancements, increasing our customer focus, while maintaining productivity and quality as strong focus areas, as we continue delivering value to all our stakeholders.”