Cummins India reported 76.3% jump in standalone net profit to Rs 561.52 crore on 20.08% rise in revenue from operations to Rs 2,268.50 crore in Q4 FY24 over Q4 FY23.
Total Sales for the quarter at Rs 2,269 crore, higher by 20% compared to the same quarter last yearDomestic sales jumped 38% YoY to Rs 1,925 crore while exports slipped 30% YoY to Rs 344 crore during the period under review.
Profit before tax stood at Rs 700.55 crore in fourth quarter of FY24, up 69.67% from Rs 412.90 crore posted in corresponding quarter previous fiscal.
Ashwath Ram, managing director of Cummins India, said, Indian economy continues to remain resilient despite geopolitical events and other economic events impacting the growth of various countries. Key economic indicators like GDP growth rate of 7.6% and consistent PMI indicate optimism about continued growth. Robust tax collections are indicating underlying growth in economic activities.
Indian Governments continued focus on infrastructure and higher allocation in the interim budget is driving growth in end markets of interest for the company. At the same time, internationally, geopolitical risks and conflicts continue to pose uncertainty about global trade and supply chain disruptions.
The company recorded another year of record revenue and profit, driven by strong demand from the domestic market while export market demand was soft. The company launched the CPCB IV+ range of products, which were very well received by customers. The company continues to have a strong balance sheet and liquidity and is well-positioned to support its operations and growth plans.
On outlook front, the company stated, The investment in infrastructure (public and private) and broader economic growth continue to drive profitable growth for the company. Concerning the Powergen Market, CPCBII products can be sold until 30 June 2024. Consequentially, the market will see a demand shift to CPCB IV+ emission norms-compliant products effective July 1, 2024. The company has a strong portfolio of CPCB IV+ emission norms-compliant products to meet customer demand across the entire product range.
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Exports might see an impact in the near term due to global economic uncertainties. The company closely monitors the results of geopolitical events unfolding in different parts of the world and their impact on global demand and supply chains. Also, the company has a diversified portfolio of products and is striving for a recovery in exports.
The company has a trusted brand, incredible product range, access to cutting-edge technology, valued stakeholder relationships, world-class manufacturing capabilities, best-inclass talent, and a customer-centric service organization with an extensive distribution and service network throughout the country and neighboring regions.
Meanwhile, the board has approved a final dividend of Rs 20 per equity share for the financial year 2023-24 and it will be paid on or around 30 August 2024. The record date for the same has been fixed on 19 July 2024.
Cummins India is a leading manufacturer of diesel and natural gas engines. The Company is engaged in the business of manufacturing trading and selling of engines and allied activities.
The scrip declined 3.67% to Rs 3,693.90 on the BSE.
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