Cummins India slumps on dip in net profit

It posted a 2% decline in net profit at Rs 199 crore in the second quarter ended September 2015

Shares of Engine manufacturer Cummins India have slumped 13% to Rs 1,044 on the BSE after the company posted a 2% decline in net profit at Rs 199 crore in the second quarter ended September 2015 as against a net profit of Rs 202 crore in the same quarter previous year.

However, net sales during this period under review stood at Rs 1,167 crore as compared to Rs 1,117 crore in the corresponding period last year depicting a jump of 4.45%.

"We are seeing gradual improvements in our domestic market compared with a year ago, but the growth is not robust yet." said Cummins India CMD Anant J Talaulicar in a filing to the BSE.

"Our domestic business recorded a 14 per cent growth compared with the same period last year, but declined 3 per cent compared with the earlier quarter, reflecting the tentative pace of investments in the capital goods sector," Talaulicar said.

The stock opened at Rs 1,063 and touched a low of Rs 1,042 on the BSE. A total of 1,134  shares changed hands on the BSE so far.