Cummins India rose 8.03% to Rs 1593.80 after the company's consolidated net profit jumped 65.9% to Rs 413.80 crore on 25.7% increase in net sales to Rs 2148.99 crore in Q3 December 2022 over Q3 December 2021.
On a consolidated basis, profit before tax (PBT) rose 62.3% YoY to Rs 532.70 crore in Q3 FY23.Total expenditure jumped 20.4% YoY to Rs 1771.94 crore in Q3 FY23. Cost of raw material consumed jumped 23.8% to Rs 1171.66 crore.
On a standalone basis, total sales for the quarter at Rs 2,144 crore increased by 26% compared to the same quarter last year and by 12% compared to the previous quarter.
Domestic sales at Rs 1,603 crore increased by 27% compared to the same quarter last year and by 15% compared to the previous quarter.
Exports sales at Rs 541 crore increased by 23% compared to the same quarter last year and by 2% compared to the previous quarter.
Profit before tax at Rs 479 crore is higher by 50% compared to the same quarter last year and higher by 42% compared to the previous quarter.
Ashwath Ram, managing director, Cummins India, said: "The demand momentum we saw in the earlier quarters continued across segments, including international markets during the quarter. With moderation in commodity costs, oil, and other industrial raw material coupled with easing inflation, the buoyant tax collections economy continues to sustain growth momentum. CIL services a broad spectrum of the economy, and we see continued demand from end markets like data centers, commercial real estate, rental, infrastructure, healthcare, and telecom, etc., Besides, Industrial sectors like mining, railways, construction, etc., demand is holding up. For the quarter ended December 31, 2022, CIL reported record quarterly revenue driven by strong domestic and export revenue coupled with prudent cost management resulting in record quarterly profit. We continue to see supply chain challenges, especially for specific electronic and other components. With geopolitical risk and inflation likely to slow down developed markets, we remain cautiously optimistic about the short to medium-term demand outlook."
In its outlook, the company said that India will reach a significant milestone in the power generation segment which will transition from Central Pollution Control Board (CPCB) II to CPCB IV+ emission norms effective 1 July 2023. Central Pollution Control Board has allowed the sale of CPCB II generator sets till 31 December 2023, post which the power generation market will evolve based on the new emission norms. Though the company is well-positioned to tackle any challenges with its strong financial position, considering the uncertainty, it will not provide any guidance for FY'24 at this time, it said.
The company's board declared an interim dividend of Rs 12 per equity share for the financial year 2022-23.
Pune-based Cummins India is the country's leading manufacturer of diesel and natural gas engines for power generation, industrial and automotive markets.
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