Cummins India surges on robust Q3 earnings

Q3 net profit up 66% year-on-year at rs 238 crore due to strong performance by the power generation business.

Cummins India has surged 7% to Rs 525 after reporting a healthy 66% year-on-year (yoy) jump in its net profit at Rs 234 crore for the quarter ended December 31, 2012 (Q3) due to strong performance by the power generation business.

 “The net income during the third quarter of the current fiscal also went up by 13% to Rs 1,089 crore from Rs 962 crore in the year-ago period. Total expenditure of engine maker increased 10% at Rs 893 crore on y-o-y basis,” Cummins India said in a filing to the BSE.

“Margins were however maintained as compared to the same period last year and sequentially on account of stringent cost reduction actions,” the company said.

 

Meanwhile, the company's board of directors also declared an interim dividend of Rs 5 per equity share of Rs 2 each for 2012-13.

The stock opened at Rs 500 and hit a high of Rs 527 on the NSE. A combined around 71,000 shares have changed hands on the counter in opening deals on both the exchanges.