The Board of Directors of Cummins India Limited, in their meeting held today, took on record the unaudited financial results for the quarter and the half year ended September 30, 2012.
Net sales of the Company for the quarter ended September 30, 2012 at Rs. 1,068 crores remained flat as compared to the Rs. 1,067 crores recorded in the same period last year, but declined 14% compared to Rs 1,241 crores recorded in the preceding quarter. Net Sales for the half year ended September 30, 2012 grew 11% to Rs. 2,310 crores from Rs. 2,089 crores over the same period last year.
Net profit before tax in the second quarter grew 21 % to Rs. 221 crores compared to Rs. 182 crores in the same period last year but declined 15% compared to Rs. 258 crores recorded in the preceding quarter. Net Profit before tax excluding exceptional items for the half year ended September 30, 2012 grew 28% to Rs. 479 crores as compared to Rs. 374 crores in the same period last year.
Anant J. Talaulicar, Chairman & Managing Director, Cummins India Limited said, “Exports declined 28 percent sequentially due to slowing down of global demand, and domestic sales dropped 7 percent primarily due to a slowdown in the power generation market. Margins were however maintained sequentially despite a significant leverage loss mainly due to increased focus on improving cost efficiencies. Margins also improved by 3.6 points over the same quarter last year primarily on account of favorable mix and cost reduction.
As economic uncertainties across the globe continue to pose growth challenges, we are focusing aggressively on implementing measures to counter the dampened demand. While our growth prospects in the short-term have been affected, the Company continues to be strongly positioned to resume growth upon revival of the markets. The Company is continuing to invest in critical technologies geared towards serving our customers dependably.”