Slow recovery to dent Cummins' India FY21 prospects, say analysts

June quarter washout could keep FY21 muted

The Cummins India stock was down 4 per cent in trade on Thursday because of disappointing results in the March quarter (Q4) of financial year 2019-20 (FY20) and weak revenue outlook for domestic and export markets.

In the domestic segment, which accounts for 74 per cent of overall revenue, weak industrial production and muted construction activity are impacting revenues. The company said while customers were not cancelling orders, they were deferring new orders and capital expenditure. 

Within the domestic power generation (diesel gensets) business, demand is holding up in hospitals and data centres, but is yet to pick up in commercial and