Cummins India Ltd on Wednesday reported a 20 per cent decline in profit after tax at ₹198.13 crore on a consolidated basis for the June quarter.
The Pune-based company had posted a consolidated Profit After Tax (PAT) of ₹246.94 crore in the year-ago period, according to a regulatory filing.
The consolidated sales from operations during this period spiked 41.47 per cent to ₹1,666.11 crore from ₹1,177.71 crore in the June quarter of 2021-22.
“Geopolitical risk, high inflation, and supply chain disruptions continue to pose challenges. However, the company can meet demand despite these issues due to its integrated supply chain management with a global network,” Ashwath Ram, Managing Director of Cummins India, said in a statement.
Being part of the globally integrated supply chain, the company is well-positioned to manage parts, supplies to mitigate the "impact" on revenue and profitability, the engine and related parts making company, said.
"We are closely monitoring the result of the geopolitical events unfolding in different parts of the world and their impact on global demand and supply chain," Ram said.
According to him, Cummins India effectively deals with challenges and closely monitors any potential impact of rising interest rates on the demand.
"(However), we remain optimistic about the short-to-medium-term demand outlook.
The company said it believes that the strong demand from various end-markets may likely sustain but at the same time, high inflation and supply chain issues will, in all probability, continue to impact the industry.
"We are closely monitoring the result of the geopolitical events unfolding in different parts of the world and their impact on global demand and supply chain," they said.