Pune, India: 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 financial results for the quarter and period ended December 31, 2022.
Performance Highlights (based on standalone financial results) for the quarter ended December 31, 2022:
- Total Sales for the quarter at ₹ 2,144 Cr. increased by 26% compared to the same quarter last year and by 12% compared to the previous quarter.
- Domestic sales at ₹ 1,603 Cr. increased by 27% compared to the same quarter last year and by 15% compared to the previous quarter.
- Exports Sales at ₹ 541 Cr. increased by 23% compared to the same quarter last year and by 2% compared to the previous quarter.
- Profit before exceptional items and tax at ₹479 Cr. is higher by 50% compared to the same quarter last year and higher by 42% compared to the previous quarter.
- Profit before tax at ₹479 Cr. is higher by 50% compared to the same quarter last year and higher by 42% compared to the previous quarter.
Ashwath Ram, Managing Director, Cummins India Limited, said:
The demand momentum we saw in the earlier quarters continued across segments, including international markets during the quarter. With moderation in commodity costs, oil, and other industrial raw material coupled with easing inflation, the buoyant tax collections economy continues to sustain growth momentum. CIL services a broad spectrum of the economy, and we see continued demand from end markets like data centers, commercial real estate, rental, infrastructure, healthcare, and telecom, etc., Besides, Industrial sectors like mining, railways, construction, etc., demand is holding up. For the quarter ended December 31, 2022, CIL reported record quarterly revenue driven by strong domestic and export revenue coupled with prudent cost management resulting in record quarterly profit. We continue to see supply chain challenges, especially for specific electronic and other components. With geopolitical risk and inflation likely to slow down developed markets, we remain cautiously optimistic about the short to medium-term demand outlook.
The recent budget announced by the Government of India has a stronger outlay for the infrastructure sector, including railways, which is expected to create strong demand from various segments in the domestic market. India will reach a significant milestone in the Power Generation segment which will transition from CPCB II to CPCB IV+ emission norms effective July 1, 2023. Central Pollution Control Board has allowed the sale of CPCB II generator sets till December 31, 2023, post which the Power Generation market will evolve based on the new emission norms. Further, the geo-political and supply chain conditions continue to be unpredictable. Though the Company is well-positioned to tackle any challenges with its strong financial position, considering the uncertainty, it will not provide any guidance for FY’ 24 at this time.