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Cummins India Limited reported total sales of ₹1,657 crore in the June quarter, an increase of 42 per cent compared with the same quarter last year and a rise of 13 per cent compared to the previous quarter. Domestic sales at ₹1,172 crore increased by 36 per cent compared to the same quarter last year and by 12 per cent compared to the previous quarter.
Exports sales were at ₹485 crore, an increase by 58 per cent compared to the same quarter last year and by 14 per cent compared to the previous quarter. Profit before exceptional items and tax at ₹278 crore is higher by 63 per cent compared to the same quarter last year and higher by 14 per cent compared to the previous quarter.
Profit before tax at ₹264 crore is lower by 13 per cent compared to the same quarter last year and higher by 8 per cent compared to the previous quarter.
Ashwath Ram, Managing Director, Cummins India Limited, said in a press statement, “ The new fiscal year started positively with strong demand from most end markets. GST monthly collections, higher highway construction annual targets, and increased consumption of petroleum products reaffirms the strength of underlying trade activities. Geopolitical risk, high inflation and supply chain disruptions continue to pose challenges”.
He added, “Cummins India can effectively meet demand despite these issues due to its integrated supply chain management with a global network. While we effectively deal with challenges and closely monitor any potential impact of rising interest rates on the demand, we remain optimistic about the short to medium-term demand outlook,” he said.
Future Outlook
The company believes that strong demand from various end markets is likely to sustain. At the same time, high inflation and supply chain issues will, in all probability, continue to impact the industry. The company, being part of the globally integrated supply chain, is well positioned to manage parts supplies to mitigate the impact on revenue and profitability. “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. Considering the uncertainty, the company will not provide any guidance for FY23,” the company said in a press release.
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