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Cummins India jumps after strong Q3 earnings

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Capital Market Mumbai
Last Updated : Apr 22 2013 | 2:47 PM IST

The company announced Q3 results after trading hours on Thursday, 31 January 2013.

Meanwhile, the BSE Sensex was up 41.62 points or 0.21% at 19,936.60.

On BSE, 21,000 shares were traded in the counter as against average daily volume of 23,764 shares in the past one quarter.

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The stock hit a high of Rs 526 and a low of Rs 500 so far during the day. The stock had hit a 52-week high of Rs 550 on 9 January 2013. The stock had hit a 52-week low of Rs 396.05 on 23 May 2012.

The stock had underperformed the market over the past one month till 31 January 2013, sliding 5.49% compared with the Sensex's 2.41% rise. The scrip had also underperformed the market in past one quarter, rising 0.19% as against Sensex's 7.51% surge.

The large-cap company has equity capital of Rs 55.44 crore. Face value per share is Rs 2.

Cummins India's core operating profit margin (OPM) surged to 19.14% in Q3 December 2012 from 16.74% in Q3 December 2011.

During the quarter, the company partially divested its stake in KPIT Cummins as a part of an ongoing evaluation of its investments. The investment was made at the time when KPIT Cummins was established. This business has matured and is now registering strong growth, Cummins India said in a statement. KPIT remains a strong service provider to Cummins across the globe including in India, the company said.

Commenting on the third quarter results, Anant J. Talaulicar, Chairman & Managing Director, Cummins India said, "Domestic sales grew 21% over the same period last year and 7% sequentially owing to continued strong sales in the Power Generation segment as well as a sequential uptick in Industrial revenues for the quarter. However, exports sales dropped 6% as compared to previous year and by 18% sequentially based on the global economic slowdown. Margins were however maintained as compared to the same period last year and sequentially primarily on account of our stringent cost reduction actions. For the full year, our margins improved primarily on account of better export realization, favorable product mix and our cost control actions. While we are impacted by the slowing economic growth in India and around the world, we remain positive about the long-term profitable growth prospects of the company based on the leadership we have established in our product technology, customer service and our people"

Cummins India's board of directors at a meeting held on Thursday, 31 January 2013, declared interim dividend of Rs 5 per share for the year ending March 2013.

Cummins India, headquartered in Pune, is India's leading manufacturer of diesel and natural gas engines for power generation, industrial and automotive markets.

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First Published: Feb 01 2013 | 11:32 PM IST

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