Investors unimpressed by Cummins numbers

DALAL STREET SPIKES

The Cummins India counter witnessed a sell-off with the stock declining 3.42 per cent at close on Thursday.

The stock was down as the company's second-quarter results failed to impress investors. On a day when the overall volumes were low, more than 2.29 lakh Cummins India shares changed hands on the BSE.

The company's net profit declined five per cent to Rs 29.06 crore from Rs 30.60 crore in the same quarter last year.

However, net sales jumped 30.6 per cent to Rs 296.75 crore (Rs 227.05 crore).

Other income edged up 10.8 per cent to Rs 18.94 crore from Rs 17.09 crore during the same period. Cummins has recently entered into an agreement with Cummins Engine Company (CECL) UK, for supply of certain models of engines as a worldwide source for a period of five years.

However, it will have to pay an one-time consideration of $4.90 million (net of tax) to CECL for getting incremental business from CECL.