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Cummins: Near-term headwinds dent investor confidence

Outlook for exports remains tepid, faster domestic growth and rebound in margins are key for stock

Ujjval Jauhari 

The Cummins stock has lost more than 12 per cent in two trading sessions to Rs 930 levels, and for good reasons. For one, the company’s performance for the quarter ending March (Q4) disappointed on lower exports while declining margins, too, failed to impress. Moreover, the outlook for the export business in FY18 remains soft. And, these could weigh on sentiment in the near-term. Chairman and Managing Director Anant J Talaulicar, in the results release, said export markets continued to disappoint based on the global economic scenario. “In particular, the demand for our ...

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Cummins: Near-term headwinds dent investor confidence

Outlook for exports remains tepid, faster domestic growth and rebound in margins are key for stock

The Cummins' stock has lost more than 12 per cent in two trading sessions to Rs 930 levels, and for good reasons. For one, the company's performance for the quarter ending March 2017 disappointed on lower exports while declining margins too failed to impress. Moreover, the outlook for exports business during FY18 remains soft. And, these could weigh on sentiment in the near-term.Even as street expectations were high, the seven per cent year-on-year and 33 per cent sequential decline in exports to Rs 301 crore were bound to impact sentiment. Operating profit at about Rs 170 crore also declined 16.7 per cent sequentially and 4.9 per cent year-on-year, and therefore margins at 14.4 per cent were lower than 16.8 per cent levels each in the year-ago quarter and sequentially. Anant J Talaulicar, chairman & managing director, Cummins, in the result release, said that exports markets continue to disappoint based on the global economic scenario. "In particular, the demand for our low ... The Cummins stock has lost more than 12 per cent in two trading sessions to Rs 930 levels, and for good reasons. For one, the company’s performance for the quarter ending March (Q4) disappointed on lower exports while declining margins, too, failed to impress. Moreover, the outlook for the export business in FY18 remains soft. And, these could weigh on sentiment in the near-term. Chairman and Managing Director Anant J Talaulicar, in the results release, said export markets continued to disappoint based on the global economic scenario. “In particular, the demand for our ... image
Business Standard
177 22

Cummins: Near-term headwinds dent investor confidence

Outlook for exports remains tepid, faster domestic growth and rebound in margins are key for stock

The Cummins stock has lost more than 12 per cent in two trading sessions to Rs 930 levels, and for good reasons. For one, the company’s performance for the quarter ending March (Q4) disappointed on lower exports while declining margins, too, failed to impress. Moreover, the outlook for the export business in FY18 remains soft. And, these could weigh on sentiment in the near-term. Chairman and Managing Director Anant J Talaulicar, in the results release, said export markets continued to disappoint based on the global economic scenario. “In particular, the demand for our ...

image
Business Standard
177 22