Cummins India Q1 Results: Profit Rises 31%, Beats Estimates

Cummins India Ltd.'s first-quarter profit rose, beating analysts' estimates. The engine-maker's net profit rose 31% over a year earlier to Rs 463 crore in the quarter-ended June, according to an exchange filing. That compares with the Rs 413-crore estimate by analysts polled by Bloomberg.

• Revenue up 4% to Rs 2,315 crore (Bloomberg estimate: Rs 2,325 crore).

• Ebitda up 38% to Rs 472 crore (Bloomberg estimate: Rs 423 crore).

• Ebitda margin at 20.4% versus 15.4% (Bloomberg estimate: Rs 18.20%)

• Net profit rose 31% to Rs 463 crore (Bloomberg estimate: Rs 413 crore).

• Domestic sales at Rs 1,873 crore, increased by 12% as compared to the same quarter last year, and decreased by 3% sequentially.

• Exports sales at Rs 389 crore decreased by 22%, as compared to the same quarter last year, and increased by 13% sequentially.

"For the quarter ending June 30, 2024, CIL domestic revenue was driven by strong domestic demand from all segments, especially from the industrial sector. Powergen revenue was expectedly softer considering the sunsetting of CPCB II norms on June 30, 2024," said Ashwath Ram, managing director, Cummins India.

Considering the outlook for the Powergen sector, there is a complete switchover to CPCB IV+ emission norms-compliant products effective July 1, 2024.

The company believes it has a strong portfolio of CPCB IV+ emission norms-compliant products to meet customer demand across the entire product range and remain cautiously optimistic about the demand outlook for the near-term and optimistic about the long-term growth prospects.

Shares of Cummins India rose 0.64% to Rs 3,520 apiece, as compared to a 0.21% decline in the benchmark Sensex.