The Hindu Business Line : Cummins Q4 sales income slips 8%

Pune, May 28 Both sales income and net profit of diesel and gas engines maker Cummins India Ltd (excluding CSS and CASL) saw a drop during the last quarter of financial year 2009 against the figures of the corresponding period in 2007-08. Net sales stood 8.2 per cent lower at Rs 615 crore (Rs 670 crore) in the fourth quarter of 2008-09, while profit after tax slipped by 10.6 per cent Y-o-Y to stand at Rs 67.5 crore (Rs 75 crore).

The company fared better during the year as a whole with net sales in 2008-09 (excluding those of CSS and CASL) growing 22.8 per cent to Rs 2,861 crore (Rs 2,331 crore). PAT was 36.5 per cent higher at Rs 383 crore (Rs 280.7 crore).

Taking on record the audited annual financial results for the fiscal ended March 31, 2009, the Board of Directors of Cummins India Ltd (CIL) recommended a final dividend of Rs 2.60 a share of Rs 2 each (130 per cent), aggregating into a total dividend of Rs 9 a share (450 per cent) for the fiscal.

During 2008-09, pursuant to a scheme of amalgamation approved by the High Court of Mumbai, two subsidiaries — Cummins Sales and Service India Ltd (CSS) and Cummins Auto Services Ltd (CASL) — merged with CIL with effect from April 1, 2008. Pursuant to this, the published results of the Company for the quarter ended March 31, 2009 include the results of CSS and CASL for the full year ended March 31, 2009.

Mr Anant Talaulicar, Chairman and Managing Director, CIL, said, “The quarter’s performance was impacted by the economic slowdown, in both domestic and export markets. We have since seen signs of revival in the domestic demand, although exports are likely to decline further in the ensuing quarters, on account of a significant recession in developed markets.”