Cummins India Reports Resilient Q2 Performance Despite Economic Challenges
The Board of Directors of Cummins India, at their meeting, reviewed and approved the unaudited financial results for the quarter.
Performance Highlights (based on standalone unaudited financial results) for the quarter ended September 30, 2023:
Total sales for the quarter were ₹ 1,871 crore, lower by 3 per cent compared to the same quarter last year and lower by 14 per cent compared to the previous quarter.
Domestic sales at ₹ 1,364 crore were lower by 2 per cent compared to the same quarter last year and lower by 19 per cent compared to the previous quarter.
Export sales at ₹ 507 crore were lower by 4 per cent compared to the same quarter last year and higher by 2 per cent compared to the previous quarter.
Profit before tax at ₹ 426 Cr. is higher by 27 per cent compared to the same quarter last year and higher by 3% compared to the previous quarter.
Profit after tax at ₹ 329 Cr. is higher by 30 per cent compared to the same quarter last year and higher by 4 per cent compared to the previous quarter.
Ashwath Ram, Managing Director, Cummins India Limited, said:
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. The stable fiscal and monetary policies, the government’s continued emphasis on infrastructure development, and the PLI-led capex are keeping the Indian economy on course for growth in the range of 6.3 to 6.8 per cent based on various estimates. Geopolitical events, especially the 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. Cummins India continues to execute its profitable growth strategy and is well-positioned to meet the demands of its end markets.
It has launched the CPCB IV+ emission norm-compliant products on time. The prior two quarters witnessed some demand shifts as both CPCB II and CPCB IV+ products are allowed to be sold until June 2024. the demand to normalise and sustain for the rest of the year.
Although geo-political events, ongoing conflicts, and their impact on supply chain conditions continue to be unpredictable, the company claims they are confident and prepared to tackle challenges. The company continues to have prudent capital allocation and cost management and has a strong balance sheet and cash position.
