Shift to new norms may hamper growth, margins for Cummins India in FY24

Supply chain challenges and export demand are other concerns for the maker of engines and power equipment

Over the past three trading sessions, the stock of Cummins India has gained about nine per cent on strong January-March quarter (Q4) results and good near-term prospects. Its Q4 performance was led by a healthy 29 per cent revenue growth over the year ago quarter. This was largely on the back of a 33 per cent jump in domestic revenues while exports witnessed a growth of 17 per cent.

Domestic sales, which accounted for 74 per cent of the company’s revenues in the quarter, were aided by pre-bookings prior to the new norms of Central Pollution Control Board (CPCB) that