Cummins India’s Q1FY19 numbers are in-line with estimates. Sales have decreased by 1% yoy to Rs1,328cr. EBITDA has increased by 9.9% yoy to Rs214.7cr during the quarter from Rs195.3cr in Q1FY18. EBITDA margin improved by ~160bps yoy to 16.2% in Q1FY19. Adjusted net profit (adjusted for exceptional gains in Q1FY18) grew by 10.2% yoy to Rs183cr.
• The flattish sales is a result of 7% yoy decline in domestic sales to ~Rs860cr given the strong base (pre-buy ahead of GST in Q1FY18). Exports on the other hand have grown reasonably well by 12% yoy to Rs441cr on account of recovery in different geographies (including Africa).
• In the domestic segment, Powergen sales declined 4% yoy to Rs360cr. Cummins expects powergen sales to recover to 7-8% yoy in FY19 led by infrastructure, manufacturing, data centres and retail demand.
• Industrial sales declined 9% yoy to Rs180cr due to subdued demand from compressors market. However, a healthy order book should enable double digit growth in Industrial sales in FY19 led by the rail and construction segments.
• Distribution sales declined by 8% yoy to Rs320cr as Cummins is monitoring receivables with a couple of customers.
• Total raw material cost has declined by 4% yoy owing to cost cutting measures and better product mix (higher exports).
• Other income increased by 19% yoy to Rs69.6cr owing to increase in rental income from India office campus.
• The company had exceptional gain of Rs56.1cr on sale of properties in Q1FY18. Adjusting the same for tax (assuming similar tax rate of 27.4%) as well, net profit is flat yoy.
Cummins India Ltd is currently trading at Rs. 699, up by 19.6 points or 2.88% from its previous closing of Rs. 679.40 on the BSE.
The scrip opened at Rs. 690.80 and has touched a high and low of Rs. 708 and Rs. 680.50 respectively. So far 7,99,556 (NSE+BSE) shares were traded on the counter. The stock is currently trading below its 200 DMA.
Actionable & Award-Winning Research on 500 Listed Indian Companies.
Please use the temporary password sent on your email id or mobile no.
Update Mobile no.
Why you need to update your Mobile number ?
By providing verified mobile number we provide more exclusive information in the website.
Update Mobile no.
Terms & Conditions
By clicking on submit button, you authorize IIFL & its representatives & agents to provide information about various products, offers and services provided by IIFL through any mode including telephone calls, SMS, letters etc. . you confirm that laws in relation to unsolicited communication referred in National Do Not Call Registry as laid down by Telecom Regulatory Authority of India will not be applicable for such information/ communication.