Cummins India hits record high after strong Q2 results

Cummins India jumped 3.49% to Rs 763.45 at 11:20 IST on BSE after net profit surged 39.8% to Rs 202.40 crore on 22.3% growth in net sales to Rs 1117.13 crore in Q2 September 2014 over Q2 September 2013.

The Q2 result was announced yesterday, 6 November 2014, when the stock market was closed on account of Gurunanak Jayanti.

Meanwhile, the S&P BSE Sensex was down 89.66 points or 0.32% at 27,826.22.

On BSE, so far 26,000 shares were traded in the counter as against average daily volume of 21,413 shares in the past one quarter.

The stock hit a high of Rs 776.50 so far during the day, which is a record high for the counter. The stock hit a low of Rs 753.65 so far during the day. The stock had hit a 52-week low of Rs 392 on 8 November 2013.

The stock had outperformed the market over the past one month till 5 November 2014, advancing 9.4% compared with the Sensex's 5.07% rise. The scrip had also outperformed the market in past one quarter, jumping 10.24% as against Sensex's 7.75% rise.

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

Commenting on the results, Anant J. Talaulicar, CMD, Cummins India said, "Despite a challenging global and domestic demand scenario, Cummins has improved its operational performance, thus sustaining margins and profitability. The business sentiment in the country has improved and so is our optimism about economic growth based on the strong intent of the new government to put the economy back on the growth track. We have, however, not experienced any resurgence in domestic demand yet. However, economic reforms aimed at making India a manufacturing hub, tax reforms and infrastructure investments will allow Cummins in India to grow by providing innovative power solutions and dependable services".

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.

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