Cummins India hosted a conference call on Feb 7, 2024. In the conference call the company was represented by Shveta Arya, Managing Director and  Prasad Kulkarni, Interim CFO.

Key takeaways of the call

Of the Q3FY25 standalone domestic sales of Rs 3041 crore (up 22%yoy), the domestic was up 18% to Rs 2577 crore and exports was up 43% to Rs 464 crore.

The PowerGen domestic sales were Rs 1271 crore(up 18%yoy, 42%qoq), Distribution were Rs 746 crore (up 13%yoy, 13%qoq), Industrial were Rs 511crore (up 24%yoy, 26%qoq).

Of exports revenue, the HHP sales were Rs 202 crore (up 47%yoy, up 1%qoq) and LHP is Rs 216 crore (up 47%yoy, up 9%qoq).

For the full year FY25, expect to achieve double-digit revenue growth over FY24. 

Of the domestic powergen PowerGen market believe that pricing will take at least another one or 2 quarters to settle in the market.  Now the market is completely buying CPCPB IV+ products unlike last quarter where there was inventory of CPCB II available.    

Dip in gross margin on yoy and qoq basis is largely due to one time benefit in last year and overall mix of products.

Of domestic power gen revenue for Q3FY25 the mix is HHP is Rs 893crore, MHP is Rs 196 crore, LHP is Rs 82 crore  and projects/heavy duty  is Rs 99 crore.

Similarly in case of 9mFY25 domestic Industrial the construction segment contribution is Rs 455 crore, Rail is Rs 357crore, Mining is Rs 170crore. 

 Revenue from compressor in Q3FY25 was Rs 51 crore.

The CPCB IV+ product continues to do well in the market. The consumer acceptance for the product is high. People recognize that it is very advanced technology and the Cummins brand is delivering the promise of reliability along with innovation. Its market presence in CPCB IV+ is also strong as the presence of the company has been all along in the power gen market.

Contribution of CPCB IV+ roughly would have been around 40% of the total power gen revenue in Q3FY25.   

Export still remains a mixed bag. This quarter, did see Middle East pick up and definitely saw Latin America pick up as well. But it''s a mixed bag.  But it''s a mixed bag at this point in time, continue to watch it.

End markets continue to be a mixed bag. And now with the US tariffs being announced, the company is assessing how these tariff changes will impact the end markets. At this point in time, it''s really difficult to say because the evaluation is in progress, the announcements of tariffs have been very decent.