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Cummins: Strong domestic growth not enough to sustain investor interest

While the management has guided for 10-15 per cent growth in India business, exports may stay on a weak footing

Cummins India
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Cummins India

Hamsini Karthik
For investors of Cummins India, a subsidiary of US-based Cummins Inc, the lack of predictability in overall growth is a concern. While the engine manufacturer has remained positive on domestic growth, exports, which account for over 30 per cent of its overall revenue, have remained the paint point for many quarters.

Exports are important, not just in terms of revenues, but also profitability. While India is not a key market for high-end products, overseas markets like Europe, Middle East and Africa are consumers of heavy-duty motors. Therefore, to scale up profitability, the higher-margin export volumes are crucial.

FY19 was expected to be

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First Published: May 30 2019 | 4:45 PM IST

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