Consolidated net sales (including other operating income) of Cummins India has increased 16.31% to Rs 2541.38 crore. Operating profit margin has jumped from 18.91% to 21.35%, leading to 31.33% rise in operating profit to Rs 542.51 crore. Raw material cost as a % of total sales (net of stock adjustments) decreased from 55.32% to 51.16%. Purchase of finished goods cost rose from 9.48% to 9.56%. Employee cost increased from 7.83% to 8.87%. Other expenses rose from 7.87% to 8.01%. Other income rose 17.14% to Rs 99.39 crore. PBIDT rose 28.91% to Rs 641.9 crore. Provision for interest rose 127.11% to Rs 6.45 crore. PBDT rose 28.35% to Rs 635.45 crore. Provision for depreciation rose 21.77% to Rs 42.29 crore. Profit before tax grew 28.84% to Rs 593.16 crore. Share of profit/loss was 23.53% lower at Rs 55.3 crore. Provision for tax was expense of Rs 147.85 crore, compared to Rs 118.9 crore. Effective tax rate was 22.86% compared to 22.32%. Minority interest was nil in both the periods. Net profit attributable to owners of the company increased 20.57% to Rs 498.91 crore. - Sales of Engine Business segment has gone up 16.79% to Rs 2,509.79 crore (accounting for 81.75% of total sales). Sales of Lubes segment has gone down 9.42% to Rs 560.28 crore (accounting for 18.25% of total sales).
- Profit before interest, tax and other unallocable items (PBIT) has jumped 18.50% to Rs 690.97 crore. PBIT of Engine Business segment rose 23.42% to Rs 620.51 crore (accounting for 89.80% of total PBIT). PBIT of Lubes segment fell 12.30% to Rs 70.46 crore (accounting for 10.20% of total PBIT).
- PBIT margin of Engine Business segment rose from 23.40% to 24.72%. PBIT margin of Lubes segment fell from 12.99% to 12.58%. Overall PBIT margin rose from 21.07% to 22.51%.
For year-to-date (YTD) results analysis.
Net sales (including other operating income) of Cummins India has increased 14.44% to Rs 6681.18 crore. Operating profit margin has jumped from 15.72% to 18.43%, leading to 34.17% rise in operating profit to Rs 1,231.15 crore. Raw material cost as a % of total sales (net of stock adjustments) decreased from 57.75% to 54.06%. Purchase of finished goods cost rose from 9.73% to 9.97%. Employee cost increased from 8.32% to 9.13%. Other expenses fell from 8.56% to 8.34%. Other income rose 26.04% to Rs 278.17 crore. PBIDT rose 32.59% to Rs 1509.32 crore. Provision for interest rose 120.25% to Rs 21.1 crore. PBDT rose 31.85% to Rs 1488.22 crore. Provision for depreciation rose 11.85% to Rs 116.8 crore. Profit before tax grew 33.89% to Rs 1,371.42 crore. Share of profit/loss was 15.90% higher at Rs 158.63 crore. Extraordinary items were increased to Rs -1.70 crore. Provision for tax was expense of Rs 346.63 crore, compared to Rs 267.65 crore. Effective tax rate was 22.68% compared to 23.34%. Minority interest was nil in both the periods. Net profit attributable to owners of the company increased 34.40% to Rs 1,181.72 crore.
- Sales of Engine Business segment has gone up 14.70% to Rs 6,588.11 crore (accounting for 80.09% of total sales). Sales of Lubes segment has gone up 4.43% to Rs 1,637.62 crore (accounting for 19.91% of total sales).
- Profit before interest, tax and other unallocable items (PBIT) has jumped 31.26% to Rs 1,630.47 crore. PBIT of Engine Business segment rose 34.60% to Rs 1,467.87 crore (accounting for 90.03% of total PBIT). PBIT of Lubes segment rose 7.27% to Rs 162.60 crore (accounting for 9.97% of total PBIT).
- PBIT margin of Engine Business segment rose from 18.99% to 22.28%. PBIT margin of Lubes segment rose from 9.67% to 9.93%. Overall PBIT margin rose from 16.99% to 19.82%.
Ashwath Ram, Managing Director, Cummins India Limited, said:
The world`s major economies are dealing effectively to cool down inflationary trends
and maintain growth rates. The continued geopolitical risks and resolution of conflicts
will likely take longer, posing continued uncertainty about global trade. Recent
conflicts impacting trade routes have caused increased freight costs and lead time for
supplies. Amidst these uncertainties, the Indian economy is holding up well on the
back of strong domestic demand and continued government spending, notably on
infrastructure. The recent Interim budget proposing higher allocation for capital
expenditure augurs well for the Indian economy.
The company recorded the highest quarterly revenue and profits based on robust
domestic demand and is well-positioned to support domestic and export demand. The
company has a strong liquidity and financial position to support its operations and
growth plans. Future Outlook:
The investment by India in infrastructure continues to bode well for the Company. The
powergen market will see a demand shift with an increasing focus on CPCB IV+
compliant products. However, upcoming quarters are likely to see mixed demand for
CPCB II and CPCB IV+ products, as CPCB II products are allowed to be sold till June
30, 2024. Global economic conditions remain uncertain as the world is witnessing geopolitical tensions, inflationary trends etc. Optimistic domestic demand outlook is
expected to contribute to sales and profitable growth for the Company, though exports
in near term may be impacted due to the global economic uncertainties in the
short/medium term. However, the Company, has a good portfolio of products and is
striving for recovery in exports. Overall, the company continues to be well positioned
with a strong brand, world class manufacturing infrastructure on ground and a bestin-class service organization with unparalleled reach throughout the country and
neighboring regions. Promoters’ stake was 51.00% as of 31 December 2023 ,compared to 51.00% as of 31 December 2022 .
| Cummins India : Consolidated Results | | | Quarter ended | Year to Date | Year ended |
|---|
| Particulars | 202312 | 202212 | Var.(%) | 202312 | 202212 | Var.(%) | 202303 | 202203 | Var.(%) |
|---|
| Net Sales (including other operating income) | 2,541.38 | 2,185.04 | 16.31 | 6,681.18 | 5,838.24 | 14.44 | 7,772.09 | 6,170.92 | 25.95 | | OPM (%) | 21.35 | 18.91 | 244 bps | 18.43 | 15.72 | 271 bps | 16.05 | 14.39 | 166 bps | | OP | 542.51 | 413.10 | 31.33 | 1,231.15 | 917.63 | 34.17 | 1,247.74 | 888.06 | 40.50 | | Other Inc. | 99.39 | 84.85 | 17.14 | 278.17 | 220.70 | 26.04 | 308.15 | 243.19 | 26.71 | | PBIDT | 641.90 | 497.95 | 28.91 | 1,509.32 | 1,138.33 | 32.59 | 1,555.89 | 1,131.25 | 37.54 | | Interest | 6.45 | 2.84 | 127.11 | 21.10 | 9.58 | 120.25 | 16.24 | 12.16 | 33.55 | | PBDT | 635.45 | 495.11 | 28.35 | 1,488.22 | 1,128.75 | 31.85 | 1,539.65 | 1,119.09 | 37.58 | | Depreciation | 42.29 | 34.73 | 21.77 | 116.8 | 104.43 | 11.85 | 142.04 | 135.62 | 4.73 | | PBT | 593.16 | 460.38 | 28.84 | 1371.42 | 1024.32 | 33.89 | 1397.61 | 983.47 | 42.11 | | Share of Profit/(Loss) from Associates | 55.3 | 72.32 | -23.53 | 158.63 | 136.87 | 15.90 | 207.98 | 91.15 | 128.17 | | PBT before EO | 648.46 | 532.7 | 21.73 | 1530.05 | 1161.19 | 31.77 | 1605.59 | 1074.62 | 49.41 | | EO Income | -1.7 | 0 | - | -1.7 | -14.3 | 88.11 | -14.3 | 132.36 | PL | | PBT after EO | 646.76 | 532.7 | 21.41 | 1528.35 | 1146.89 | 33.26 | 1591.29 | 1206.98 | 31.84 | | Taxation | 147.85 | 118.9 | 24.35 | 346.63 | 267.65 | 29.51 | 363.14 | 273.24 | 32.90 | | PAT | 498.91 | 413.8 | 20.57 | 1181.72 | 879.24 | 34.40 | 1228.15 | 933.74 | 31.53 | | Minority Interest (MI) | 0 | 0 | - | 0 | 0 | - | 0 | 0 | - | | Net profit | 498.91 | 413.8 | 20.57 | 1181.72 | 879.24 | 34.40 | 1228.15 | 933.74 | 31.53 | | P/(L) from discontinued operations net of tax | 0 | 0 | - | 0 | 0 | - | 0 | 0 | - | | Net profit after discontinued operations | 498.91 | 413.8 | 20.57 | 1181.72 | 879.24 | 34.40 | 1228.15 | 933.74 | 31.53 | | EPS (Rs)* | 18.04 | 14.93 | 20.88 | 42.68 | 32.10 | 32.96 | 44.69 | 30.08 | 48.56 | | | * EPS is on current equity of Rs 55.44 crore, Face value of Rs 2, Excluding extraordinary items. | | # EPS is not annualised | | bps : Basis points | | EO : Extraordinary items | | Figures in Rs crore | | Source: Capitaline Corporate Database |
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| Cummins India : Consolidated Segment Results | td>-| | Quarter ended | Year to Date | Year ended |
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| % of (Total) | 202312 | 202212 | Var.(%) | % of (Total) | 202312 | 202212 | Var.(%) | % of (Total) | 202303 | 202203 | Var.(%) |
|---|
| Sales | | Engine Business | 81.75 | 2,509.79 | 2,148.99 | 16.79 | 80.09 | 6,588.11 | 5,743.95 | 14.70 | 78.05 | 7,641.40 | 6,056.97 | 26.16 | | Others | 0.00 | 0.00 | 0.00 | - | | Intragroup | 0.00 | 0.00 | 0.00 | - | | Lubes | 18.25 | 560.28 | 618.52 | -9.42 | 19.91 | 1,637.62 | 1,568.17 | 4.43 | 21.95 | 2,148.84 | 1,693.75 | 26.87 | | Total Reported Sales | 100.00 | 3,070.07 | 2,767.51 | 10.93 | 100.00 | 8,225.73 | 7,312.12 | 12.49 | 100.00 | 9,790.24 | 7,750.72 | 26.31 | | Less: Inter segment revenues | | 0.00 | 0.00 | - | | 0.00 | 0.00 | | 0.00 | 0.00 | - | | Net Sales | 100.00 | 3,070.07 | 2,767.51 | 10.93 | 100.00 | 8,225.73 | 7,312.12 | 12.49 | 100.00 | 9,790.24 | 7,750.72 | 26.31 | | PBIT | | Engine Business | 89.80 | 620.51 | 502.78 | 23.42 | 90.03 | 1,467.87 | 1,090.58 | 34.60 | 87.82 | 1,513.14 | 1,139.18 | 32.83 | | Others | 0.00 | 0.00 | 0.00 | - | | Intragroup | 0.00 | 0.00 | 0.00 | - | | Lubes | 10.20 | 70.46 | 80.34 | -12.30 | 9.97 | 162.60 | 151.58 | 7.27 | 12.18 | 209.90 | 182.16 | 15.23 | | Total PBIT | 100.00 | 690.97 | 583.12 | 18.50 | 100.00 | 1,630.47 | 1,242.16 | 31.26 | 100.00 | 1,723.04 | 1,321.34 | 30.40 | | Less : Interest | | 0.00 | 0.00 | - | | 0.00 | 0.00 | - | | 0.00 | 0.00 | - | | Add: Other un-allcoable | | -44.21 | -50.42 | 12.32 | | -102.12 | -95.27 | -7.19 | | -131.75 | -114.36 | -15.21 | | PBIT Margin(%) | | Engine Business | | 24.72 | 23.40 | 132.75 | | 22.28 | 18.99 | 329.40 | | 19.80 | 18.81 | 99.41 | | Others | | 0.00 | 0.00 | 0.00 | | Intragroup | | 0.00 | 0.00 | 0.00 | | Lubes | | 12.58 | 12.99 | -41.32 | | 9.93 | 9.67 | 26.30 | | 9.77 | 10.75 | -98.68 | | PBT | 100.00 | 646.76 | 532.70 | 21.41 | 100.00 | 1,528.35 | 1,146.89 | 33.26 | 100.00 | 1,591.29 | 1,206.98 | 31.84 |
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