Cummins India Ltd has reported a stellar performance for the March quarter, with a 50 percent year-on-year rise in consolidated profit after tax, reaching Rs 530.5 crore. The impressive growth has been driven by robust demand in both domestic and international markets, as detailed in the company’s latest exchange filing.
The company’s revenue for the quarter stood at Rs 2,319 crore, marking a significant increase of 19.9 percent compared to the same period last year. This performance has surpassed market expectations, with an average of four brokerages predicting a profit of Rs 350 crore, reflecting a 9.5 percent increase, and revenue of Rs 2,140 crore, anticipating an 11.1 percent rise.
“The Board has approved and recommended to members for their consideration and approval a Final Dividend of Rs 20/- (1000%) per equity share on 277,200,000 fully paid-up equity shares (Face Value Rs. 2/- each) for the Financial Year 2023-24, in addition to the interim dividend of Rs 18/- per share declared on February 07, 2024,” the company announced in a statement. This brings the total dividend payout for the fiscal year to Rs 38 per share.
Cummins India’s robust performance in the January-March period marks the fifth consecutive quarter of leveraging growth in private and public capital expenditure. The easing of execution issues has further bolstered the company’s revenue growth. Despite these positive results, the stock ended the day unchanged at Rs 3,834.50 from the previous session’s close.
Market analysts have raised concerns about the potential impact of new emission norms on the generator manufacturing sector. The transition to the Central Pollution Control Board (CPCB) IV+ norms, amid unpredictable geopolitical and supply chain conditions, may pose challenges, particularly in sourcing new motors to comply with these standards.
Cummins India continues to navigate these complexities while maintaining strong financial performance, demonstrating resilience and adaptability in a dynamic market environment.
