Cummins India reported a 57% jump in net profit to Rs 185.69 crore on 19.2% rise in net sales to Rs 1,230.86 crore in Q4 FY21 over Q4 FY20.
Cummins said its domestic sales stood at Rs 976 crore in Q4 FY21, improving 26% year on year from Q4 FY20 and declining by 5% as compared preceding quarter. Export sales stood at Rs 255 crore in Q4 FY21. Exports declined by 1% as compared to the same quarter last year and declined by 32% as compared to the preceding quarter.Standalone profit before tax (after exceptional items) stood at Rs 245 crore in Q4 FY21, up 109% over Rs 117 crore in Q4 FY20.
The company registered a 1.8% fall in standalone net profit to Rs 617.87 crore in the year ended March 2021 (FY21) compared with the year ended March 2020 (FY20). Net sales declined by nearly 16% year-on-year to Rs 4,256.09 crore in FY21 over FY20.
Ashwath Ram, MD of Cummins India said, Economic activities and business sentiment picked up from Q2 FY'20. This, coupled with pent up demand, saw revenue growth recovering from Q2. Government spending on infrastructure and continued strength in Industrial and Powergen segments helped in sequential recovery up to Q3. The onset of the second wave of COVID-19 in March 2021 has impacted overall economic recovery. With vaccinations likely to pick up in coming weeks, case rates should decline, so we expect the economy to recover from the end of Q2 FY'22 and we expect quarterly improvement. We continue to closely monitor our end markets and are well prepared to scale when the economy picks up.
He further added, "COVID-19 impacted our export business as well. Demand started to show gradual improvement in Q3 FY'21. As vaccination rates pick up globally, economic activities are restarting, and we believe most of our end markets will fully recover in FY 22. We believe that with improved operating fundamentals, great products, a strong balance sheet and steady cash flow, we are strongly placed to succeed in these dynamic conditions. As the economy rebounds, we are well positioned to sustain our technology driven market leadership across all segments of our business. Supply chain disruptions need to be managed effectively, especially those faced by the global market in electronic parts. We continue to work closely with our supply chain partners to secure our supplies to meet the delivery requirements of our customers. We also continue to work closely with other stakeholders to support our communities in this difficult period."
With respect to future outlook, the company expects a very gradual recovery of demand in upcoming quarters. As market conditions continue to remain uncertain and visibility for end market recovery is still somewhat limited, the company is not providing a full year revenue guidance for FY 2022.
Shares of Cummins India were down 5.12% at Rs 762.10 on BSE.
Cummins India, part of the Cummins Group, is the country's leading manufacturer of diesel and natural gas engines for power generation, industrial and automotive markets.
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