Cummins India's net profit in March quarter up y-o-y by 50%

30 May 2024 , 01:32 PM

Cummins India Ltd, a maker of diesel and natural gas engines, reported a 50% year-on-year increase in consolidated profit after tax to ₹530.5 Crore for the March quarter, boosted by strong demand in domestic and international markets.

Cummins reported revenue of ₹2,319 Crore in Q4FY24, up 19.90%, in an exchange filing.

The diesel maker also said that the board has approved an interim dividend of ₹20 for the fiscal year 2023-24. It stated that the Board has approved and recommended to members for their consideration and approval a Final Dividend of ₹20 (1000%) per equity share on 277,200,000 fully paid-up equity shares (Face Value ₹2 each) for the Financial Year 2023-24, in addition to the interim dividend of ₹18 per share declared on February 7, 2024.

Cummins India has posted excellent revenue for the fifth consecutive quarter, owing to an increase in demand caused by growth in private and public capital spending, as well as an improvement in execution concerns.

According to market experts, the transition to new emission standards may have a negative impact on generator manufacturers’ toplines since geopolitical and supply chain conditions remain unpredictable, and obtaining new motors to fulfill CPCB IV+ regulations would be challenging.

Cummins India is a top manufacturer of diesel and natural gas engines. The company manufactures, trades, and sells engines, as well as other related businesses.

In addition, management stated that material margins will face severe pressure in the future.

Cummins India’s Earnings Before Interest, Tax, Depreciation, and Amortisation (EBITDA) margins reached a multi-quarter record in the March quarter, jumping to 23.5% from 16.9% the previous year.

 

At around 1.25 PM, Cummins India was trading 1.41% lower at ₹274.34, against the previous close of ₹278.26 on NSE. The counter touched an intraday high and low of ₹276.53, and ₹273.66, respectively.

 

 

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