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The Board of Directors of Cummins India Limited, at a recent meeting, took on record the audited financial results for the quarter and year ended March 31, 2020. Revenue for the quarter, at ₹1,032 crore, declined by 21 per cent from ₹1,314 crore recorded in the same quarter last year and by 28 per cent compared to the ₹1,428 crore recorded in the preceding quarter.
The contraction was on account of muted order bookings due to the economic slowdown and accentuated by the Covid-19-related lockdown which impacted revenue for the quarter, a press statement issued by the company stated.
Domestic sales in the current quarter, at ₹775 crore, declined by 22 per cent as compared to ₹992 crore recorded during the same quarter last year and declined 27 per cent from ₹1,058 crore recorded during the preceding quarter. Exports for the current quarter, at ₹257 crore, declined 20 per cent compared to ₹322 crore recorded in the same quarter last year and 31 per cent from the ₹370 crore recorded in the preceding quarter. Profit before tax (excluding exceptional items), at ₹121 crore, is 42 per cent lower as compared to the ₹209 crore recorded during the same quarter last year and 52 per cent lower as compared to the ₹254 crore recorded during the preceding quarter.
In a statement, Ashwath Ram, Managing Director, Cummins India Limited, said: “ Revenue and EBITDA for the quarter was impacted due to the lockdown. Excluding the Covid-19 impact, the revenue would have been at ₹1,220 crore. Since Q2 of FY19 we have been experiencing a slowing economy, which led to a flat/negative growth rate.” Export markets have continued to display softness in the last few quarters, arising from global economic challenges. During this quarter also, we experienced a decline in certain markets where conditions deteriorated further due to Covid-19, he said.
Cummins India Limited, headquartered in Pune, is the country's leading manufacturer of diesel and natural gas engines for power generation, industrial and automotive markets.
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