Cummins India gains as Q3 margins improve

Cummins India rose 1.54% to Rs 446 at 10:04 IST on BSE after the company's operating profit margin edged up to 19.31% in Q3 December 2013, from 19.14% in Q3 December 2012.

The company announced the result after market hours on Tuesday, 4 February 2014.

Meanwhile, the BSE Sensex was down 112.27 points, or 0.56%, to 20,099.66.

On BSE, so far 13,000 shares were traded in the counter, compared with an average volume of 43,829 shares in the past one quarter.

The stock hit a high of Rs 451.20 and a low of Rs 440.45 so far during the day. The stock hit a 52-week high of Rs 545 on 22 February 2013. The stock hit a 52-week low of Rs 365.05 on 28 August 2013.

The stock had underperformed the market over the past one month till 4 February 2014, sliding 4.68% compared with the Sensex's 3.07% fall. The scrip had, however, outperformed the market in past one quarter, rising 6.55% as against Sensex's 4.84% decline.

The large-cap company has an equity capital of Rs 55.44 crore. Face value per share is Rs 2.

Cummins India's net profit fell 37.1% to Rs 147.23 crore on 6.09% fall in total income from operations (net) to Rs 1023.01 crore in Q3 December 2013 over Q3 December 2012.

The sharp fall in net profit was due to base effect. The company's bottom line in Q3 December 2012 was boosted by exceptional profit of Rs 47.50 crore on sale of long term (trade) investments.

The operating profit declined 5.3% to Rs 197.56 crore in Q3 December 2013 over Q3 December 2012.

Anant J. Talaulicar, Chairman & Managing Director, Cummins India said, "In spite of very adverse market conditions, we maintained our margins as compared to last year and expanded margins as compared to the preceding quarter mainly due to our focus on improving cost efficiencies. We are not seeing any signs of improvement in the Indian capital goods markets. However, we continue to maintain market share leadership. Despite the short and medium term challenges, our prospects in the long term continue to look positive. We are investing in advanced technologies and solutions that are of value to our customers, of which our recently announced CPCBII emission compliant generator sets are strong examples. We are confident that with the kind of investments we are making in our future, we will continue to be well-positioned to serve our customers with the most dependable solutions."

Cummins India, headquartered in Pune since 1962, is the country's leading manufacturer of diesel and natural gas engines for power generation, industrial and automotive markets.

Powered by Capital Market - Live News