Cummins India Q2 PAT rises 21% YoY to Rs 267 cr

Cummins India reported 20.9% rise in consolidated net profit to Rs 267.31 crore on 13.12% increase in revenue from operations to Rs 1,957.28 crore in Q2 FY23 over Q2 FY22.

Profit before tax stood at Rs 351.06 crore, registering a growth of 19.6% YoY from Rs 293.60 posted in Q2 FY22.

On the segmental front, revenue from Engine sales was Rs 1,928.85 crore (up 13.97% YoY) while that from the sales of Lubes was Rs 434.94 crore (up 14.6% YoY) in the quarter ended 30 September 2022.

Total expenses increased by 13.3% YoY to Rs 1,707.82 crore during the quarter, due to higher raw material costs (up 21% YoY), higher finance costs (up 90.69% YoY) and higher other expenses (up 11% YoY).

Ashwath Ram, managing director of Cummins India, said: CIL reported record revenue for the quarter with sustained demand visible across most of our domestic and exports end markets. Despite headwinds of inflation, geo-political issues etc. economic activities are sustaining growth momentum. Robust tax collections, softening of commodity cost, focus on infrastructure and continued efforts on digitizing the economy are auguring well for our products and services.

While the supply chain constraint continues, we being part of a global integrated supply chain is enabling us to secure supplies to meet the demand. We remain cautiously optimistic about the short to medium term demand outlook.

With respect to future outlook, Cummins India said that it believes that that in the near to medium term the strong demand from various end markets may likely sustain. It continued to closely monitor impact of rising inflation and consequential monetary policy action of raising interest rates and its impact on consumption across our end markets.

The company is well positioned to deal with these uncertainties as we have a strong balance sheet, integration with global supply chain and in-country world class infrastructure and human resources. Given the uncertain economic environment due to rising inflation and geo-political issues, the company is not providing guidance for FY23.

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

The scrip rose 0.14% to end at Rs 1,331.15 on the BSE.

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