Cummins in a sweet spot to capture growth

Dec quarter performance the best in recent times; higher infra allocation in Budget also positive

Much in contrast to the results so far, when most companies reported their slowest revenue growth in the December quarter (Q3), Cummins stood out as an exception. This is despite demand for its low-horsepower (HP) motors being relatively weak because of the note ban. Importantly, the outlook for the company is looking better and analysts say, the higher allocation to infrastructure sector is also beneficial for capital goods players such as Cummins.
 
For the quarter, net revenues at Rs 1,355 crore expanded by 18 per cent year-on-year (y-o-y), making it one of the most convincing performances in recent times.