Cummins India reports 33% rise in Q1 net profit; Stock jumps 7%

The company reported a 12% YoY rise in domestic sales to ₹1,873 crore however, export sales declined 22% YoY to ₹389 crore. The company’s operating earnings before interest, taxes, depreciation, and amortisation (EBITDA) for the quarter rose by 38.21% YoY to ₹473.3 crore.

Ashwath Ram, managing director of Cummins India, said that the company’s domestic revenue saw growth due to strong demand across all segments especially from the industrial sector. The company’s Powergen revenue was lower due to the sunsetting of CPCB II norms. He further stated that the government’s focus on infrastructural development will provide support despite geopolitical uncertainties.

“Indian economic outlook continues to be positive; tax collections are indicating the strength of underlying business activities. The latest Union budget emphasized the government’s continued focus on infrastructure development and continued higher budgetary allocation for infrastructure, special projects for end-to-end connectivity for ports, coal, steel, and fertilizer sectors,” he said.

Regarding the future outlook, the company stated that public and private investments in infrastructure along with economic growth will drive profitability. The Powergen sector switched over completely to CPCB IV+ norms from July 1, 2024. Cummins India has a strong portfolio of products that are compliant with CPCB IV+ norms and will help the company meet customer demand.

The company will also be closely tracking the geopolitical situation that could impact global supply chains. However, the company is optimistic about export demand.

Shares of the company have risen by nearly 93% since the beginning of the year. The stock has gained over 115% in the past year.