Bengaluru, India, 5th August 2023 Cummins India Limited (NSE: CUMMINSIND, BSE: 500480) The Board of Directors of Cummins India Limited (CIL), at their meeting held today, reviewed, and approved the unaudited financial results for the quarter ended June 30, 2023.
Performance Highlights (based on standalone unaudited financial results) for the quarter ended June 30, 2023:
- Profit after tax at ₹ 316 Cr. is higher by 59% compared to the same quarter last year and lower by 1% compared to the previous quarter.
- Total Sales for the quarter at ₹ 2,175 Cr. increased by 31% compared to the same quarter last year and increased by 15% compared to the previous quarter.
- Domestic sales at ₹ 1,677 Cr. increased by 43% compared to the same quarter last year and increased by 20% compared to the previous quarter.
- Exports Sales at ₹ 498 Cr. increased by 3% compared to the same quarter last year and increased by 1% compared to the previous quarter.
- Profit before tax at ₹ 415 Cr. is higher by 57% compared to the same quarter last year and is almost flat compared to the previous quarter.
Ashwath Ram, Managing Director, Cummins India Limited, said:
Indian economy continues to grow steadily despite global geo-political uncertainty, inflationary trends, demand fluctuations, etc. This is evident through macroeconomic indicators such as robust GST and direct tax collections, the Index of Industrial Production (IIP), Purchasing Managers’ Index (PMI), etc. 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 the increase in demand across sectors. The global economic outlook continues to be mixed, given the inflation containment measures impacting demand.
For the quarter ended June 30, 2023, CIL reported record revenue, driven by strong domestic and pre-buy demand considering CPCBIV+ emission changes effective July 1, 2023. Exports revenue was almost at the same level as the previous quarter. With the revised guidelines on the implementation of CPCBIV+ and continued specific supply chain challenges, especially for certain electronic and other components, we remain cautiously optimistic about the demand outlook for the near term and positive about the long-term growth prospects.
Post the quarter that ended June 30, 2023, the company launched products duly certified to meet the new emissions norms in the Powergen segment. The company 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.
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. CIL 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.