Diesel engine manufacturer Cummins India's fourth quarter profit after tax is seen rising 14.2 percent year-on-year to Rs 162 crore, according to a CNBC-TV18 poll.
Total income from operations may go up 13.5 percent to Rs 1,103 crore for the quarter ended March 2015 compared to Rs 972 crore in the year-ago period, driven by exports (higher LHP exports).
Operating profit is likely to climb 14 percent year-on-year to Rs 180 crore and margin may be flat at 16.3 percent in the quarter gone by.
Analysts said domestic power generator market remained weak on account of sluggish capex. In the eventual future, exports could come under strain as the outlook for Latin America, Africa, Europe and China is deteriorating, they added.
According to them, there has been a fear of company losing market share post price hike of 20-25 percent taken under the CPCB II norms. (Company undertook a price hike due to the change in Centre of Pollution Control Board II norms)
Management commentary on demand outlook (on domestic power generation) and traction in exports will be monitorable.
Guidance
FY15 revenue guidance was unchanged for domestic at negative 5 percent to 0 percent growth while exports guidance raised from 30 percent growth to more than 30 percent growth.
For FY16, the company expects domestic revenue to grow 0 to 5 percent and exports to rise more than 10 percent.
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