Cummins India Q1 beats analysts forecast, stock soars 8%

Q1 operating profit increased by 34% at Rs 270 crore on year-on-year basis.

Cummins India has soared 8% to Rs 472 after reporting a better-than-expected net profit at Rs 181 crore for the quarter ended June 2012, on back of higher sales and other income. Analysts, on an average expected net profit of Rs 150 crore for the quarter. The company had a net profit of Rs 177 crore in year ago quarter.

Net sales grew 22% at Rs 1,259 crore, while income from other sources jumped 36% at Rs 38 crore in Q1 FY13 over the previous year. Operating profit increased by 34% at Rs 270 crore on year-on-year basis.

The stock opened at Rs 437 and hit a low of Rs 431 on the National Stock Exchange. As many as a combined 1.2 million shares have already changed hands on the counter till noon deals, against an average around 75,000 shares that were traded daily in past two weeks.