Cummins scales lifetime high on strong demand outlook

Representative image (AP Photo/Amr Nabil, File)

Shares of Cummins India inched higher on February 9 as a sharp jump in Q3 revenue and net profit along with better operational performance cheered investors. Strong demand outlook by the management also drove the stock higher.

The stock scaled its lifetime high of Rs 1,618 apiece at open. At 9:39 am, it was trading 9.4 percent higher at Rs 1,613.55 on the BSE.

Ashwath Ram, Managing Director, Cummins India, said, “The demand momentum we saw in the earlier quarters continued across segments, including international markets during the quarter”.

He sees continued demand from end markets like data centers, commercial real estate, rental, infrastructure, healthcare, and telecom among others.

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Revenue from operations stood at Rs 2,185,04 crore in the December quarter as compared to Rs 1,743.66 crore a year ago. Whereas net profit also witnessed a significant jump to Rs 413.8 crore from a year ago’s Rs 249.50 crore.

The Pune-based company’s operating margin came in at 18.9 percent in the quarter under review from 15.63 percent last year, largely due to a moderation in commodity costs.

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Cummins India is a manufacturer of diesel and natural gas engines for power generation, industrial and automotive markets.

However, the company cautioned that the geo-political and supply chain conditions remain unpredictable which is why it did not provide any guidance for FY24 this time despite.