Cummins India reported 1.9% rise in net profit to Rs 189.15 crore on a 19.3% surge in net sales to Rs 1,468.50 crore in Q4 FY22 over Q4 FY21.
Profit before tax was marginally lower at Rs 243.69 crore in Q4 FY22 from Rs 245.22 crore recorded Q4 FY21. The company reported a 19.3% rise in total expenses to Rs 1,286.93 crore in Q4 FY22 over Q4 FY21.Cost of material consumed surged 35.6% to Rs 938.51 crore while employee benefit expenses rose 6.92% to Rs 142.84 in Q4 FY22 over Q4 FY21.
Domestic sales stood at Rs 1,046 crore, improving 7% compared to the same quarter last year. Meanwhile, exports sales stood at Rs 423 crore, increased 66% as compared to the corresponding quarter previous year.
Ashwath Ram, managing director of Cummins India, said, We believe that despite supply chain disruptions, high commodity costs, and geopolitical issues, India is on the path to sustained economic recovery considering strong domestic demand and robust export performance. Economic recovery is visible with record monthly GST collections over Rs 1 Lakh crore for most of the year; increased spending on discretionary items; Capex, primarily private Capex cycle is slowly coming back. An elevated level of inflation and associated actions to contain inflation from the Government and the RBI to raise interest rates may to some extent, impact demand in the near to medium term.
He further added, I am pleased to announce that Cummins India, its associate and JV companies Cummins Generator Technologies India, and Valvoline Cummins, posted record annual revenue in FY'22. This record revenue performance was possible due to focused and dedicated efforts of our employees, supply chain partners, and continued strong support from Cummins Inc. to help us meet customer demand. I am delighted that our teams delivered record revenue despite significant supply chain disruptions. We continue to leverage our globally integrated supply chain to address the supply challenges, and our endeavor remains to sustain profitable growth in this challenging inflationary business environment.
Commenting on future outlook, Cummins said it expects continued growth momentum for the economy, and it is also hopeful that the lagging segments will rebound in FY23. The company anticipates that India's growth momentum will sustain with a strong push from the Government through policy interventions and infrastructure spending coupled with an improvement in supply chain situation. Inflationary impact, especially on commodities, continues to be a challenge and thus Cummins assured that it is taking tactical pricing and productivity actions to mitigate the same. Given the uncertainty in the current business environment due to geopolitical situation and supply chain challenges, Cummins said it is not providing full-year revenue guidance for FY23.
On full year basis, the company recorded 43.5% surge in net profit to Rs 886.65 crore on a 41.6% rise in net sales to Rs 6,025.56 crore in FY22 over FY21.
Meanwhile, the board of directors of the company recommended a dividend of Rs 10.5 per equity share, for the financial year ended 31 March 2022. The record date for the said divided is fixed on Wednesday, 3 August 2022.
Cummins India, part of the Cummins Group in India, is the country's leading manufacturer of diesel and natural gas engines for power generation, industrial and automotive markets.
Shares of Cummins India were trading 1.99% down at Rs 1008.65 on the BSE.
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