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Cummins India Ltd reported profit before tax of ₹194 crore in the first quarter of the current fiscal, 23 per cent lower compared to ₹254 crore recorded in the same quarter last year.
The Board of Directors of the company, at its meeting held on Wednesday, took on record the unaudited financial results for the quarter ended June 30. Net sales for the quarter stood at ₹1,316 crore, a growth of 2 per cent compared to ₹1,296 crore recorded in the same quarter last year.
Cummins India, headquartered in Pune, is at leading manufacturer of diesel and natural gas engines for power generation, industrial and automotive markets. Domestic sales during the current quarter were at ₹990 crore, a 16 per cent growth over the same quarter last year. Exports declined 26 per cent to ₹327 crore.
Sandeep Sinha, Managing Director, Cummins India, in a press statement said, “Domestic business registered strong growth over the previous year across all segments of the business. This could have been even more robust, however, order intake was impacted by the liquidity crunch in the economy as shadow banks went into a crisis mode, as well as uncertainty prevailing in the run up to the elections led to a delay in projects approvals”. He added, “This is likely to play out further for at least another quarter, but the revival is expected, albeit gradually thereafter. Our confidence on the medium to long term outlook on domestic sales, especially from the infrastructure sectors, is even higher as stated allocations from the Budget positively impact this sector”.
Sinha said export markets have displayed softness in recent quarters, arising from global economic challenges. “In this quarter we also experienced decline in certain markets within the global power generation business, where conditions became weak, based on difficulties that some of these economies are now experiencing,” he added.
MD appointment
The company announced the appointment of Ashwath Ram as India ABO leader and Managing Director, effective from August 17. His responsibilities will include leading all business units and functional groups in India, including all manufacturing sites and legal entities.
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