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Cummins India Q1 PAT down nearly 20% YoY to Rs 198 crore

Cummins India reported 19.8% fall in consolidated net profit to Rs 198.13 crore on a 41.9% increase in revenue from operations to Rs 1,695.92 crore in Q1 FY23 over Q1 FY22.

August 10, 2022 1:25 IST | capital market
On the segmental front, revenue from Engine sales was Rs 1,666.11 crore (up 41.5% YoY) while that from the sales of Lubes was Rs 514.71 crore (up 65% YoY) in the first quarter. Total expenses increased by 40.5% YoY to Rs 1,517.29 crore during the quarter, due to higher raw material costs (up 43% YoY), higher cost of traded goods purchases (up 48.1% YoY), higher employee expenses (up 11.8% YoY) and higher other expenses (up 28.7% YoY). Profit before tax in Q1 FY23 stood at Rs 263.13 crore, down by 16.1% from Rs 313.75 crore in Q1 FY22. Ashwath Ram, managing director, Cummins India, said: ?The new fiscal year started positively with strong demand from most end markets. GST monthly collections, higher highway construction annual targets, and increased consumption of petroleum products reaffirms the strength of underlying trade activities. Geopolitical risk, high inflation, and supply chain disruptions continue to pose challenges. Cummins India can effectively meet demand despite these issues due to its integrated supply chain management with a global network. While we effectively deal with challenges and closely monitor any potential impact of rising interest rates on the demand, we remain optimistic about the short to medium-term demand outlook.? With respect to future outlook, Cummins India said that it believes that the strong demand from various end markets may likely sustain. At the same time, high inflation and supply chain issues will, in all probability, continue to impact the industry. The company, being part of the globally integrated supply chain, is well positioned to manage parts supplies to mitigate the impact on revenue and profitability. We are closely monitoring the result of the geopolitical events unfolding in different parts of the world and their impact on global demand and supply chain. Considering the uncertainty, the company will not provide any guidance for FY 23,? Cummins said in a statement. Cummins India, part of the Cummins Group in India, is the countrys leading manufacturer of diesel and natural gas engines for power generation, industrial and automotive markets. The scrip shed 0.21% to currently trade at Rs 1186.50 on the BSE. Powered by Capital Market - Live News

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