Cummins India surges on good Q3 results

The stock surged 8% to Rs 919 on the BSE in early morning trade.

Cummins India has surged 8% to Rs 919 on the BSE in early morning trade after the company reported 18% year on year growth in net profit at Rs 198 crore for the quarter ended December 2016 (Q3FY17), on back of healthy operational income.

Total income from operations increased by 17.8% at Rs 1,453 crore in Q3FY17 against Rs 1,233 crore in the corresponding quarter of previous fiscal.

EBITDA (earnings before interest, tax, depreciation and amortization) margin expanded 158 basis points to 15.58% compared to 14% in last year.

“We continued to see growth in all our domestic markets largely driven by Government investments in infrastructure. We did see a minor impact of demonetization on the demand for our low kilowatt generators,” said Anant J. Talaulicar, Chairman & Managing Director, Cummins India.

The Company remains optimistic about its growth prospects, particularly if the Government continues its emphasis on economic growth, he added.

The board has declared an interim dividend of Rs 5 per equity share of Rs 2 each for the financial year 2016-17. The company has fixed February 11, 2017 as the record date for the purpose of payment of interim dividend.

At 10:20 am; the stock was up 5.5% at Rs 896 on the BSE as compared to 0.15% rise in the S&P BSE Sensex. The trading volumes on the counter jumped more than five-fold with a combined 1.04 million shares changed hands on the BSE and NSE so far.