Cummins India Q3 profit seen up 6% to Rs 192 cr

Diesel and natural gas engines manufacturer Cummins India's third quarter consolidated profit is likely to increase 5.8 percent year-on-year to Rs 192 crore and revenue may increase 12 percent to Rs 1,209 crore, according to average of estimates of analysts polled by CNBC-TV18.

Operating profit (earnings before interest, tax, depreciation and amortisation) may grow 8 percent to Rs 204 crore but margin may contract 60 basis points to 16.9 percent compared to year-ago period.

Analysts expect moderate growth in earnings. Domestic power generation business may be expanded due to lower base in year-ago period (declined 23 percent YoY in Q3FY15), market share gain for Cummins led by competitive pricing and power cuts (that may boost genset sales).

Higher other income is expected due to increase in dividend payout from Cummins Valvoline while margin may be aided by low commodity prices.