Diesel and natural gas engine maker Cummins India Ltd posted a 26.4 percent rise in consolidated profit after tax for the December quarter, supported by robust demand in domestic and international markets.
At Rs 454.9 crore, the profit after tax (PAT) was higher than Rs 360 crore in the year-ago period. The company's revenue came in at 2,534.1 crore, up 16.2 percent from the year-ago quarter.
The company's earnings surpassed the market expectations, with the PAT coming in 29.6 percent higher than the CNBC TV-18 estimate, and the revenue exceeding the news channel's forecast by 10.3 percent.
Prabhudas Lilladher expected Cummins India to report net profit at Rs 349.4 crore, down 3 percent from last year. Net sales were expected to go up 9.1 percent YoY (25.2 percent QoQ) to Rs 2,379.1 crore.
The October-December period marks the fourth quarter in a row when Cummins India was been able to take advantage of the uptick in demand created by growth in private and public capital expenditure along with an easing of execution issues to post strong revenues.
The company also informed the exchanges that its board has approved and declared an interim dividend of "Rs 18 per equity shares", i.e. at the
"rate of 900 percent on 277,200,000 equity shares" of face value of Rs 2 each for the financial year 2023-24.
Cummins manufactures engines for power generation, industrial and automotive sectors. In the trading session on February 7, Cummin's scrip settled at Rs 2,399.20, lower by 0.19 percent as against the previous day's close.
Market experts have said that the switch to new emission norms may hit the topline of generator makers as geo-political and supply chain conditions remain unpredictable and getting new motors to meet CPCB IV+ norms would be difficult.
Notably, the Central Pollution Control Board (CPCB) has extended the deadline for the ban on the sale of CPCB II generators to June 30, 2024 from December 31, 2023.
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