Cummins India Ltd has posted a net profit of Rs 177.2 crore during the first quarter of fiscal 2012, showing a rise of 27 per cent year on year.
However, this figure includes a profit of Rs 51.4 crore realised when the company divested its entire shareholding in Cummins Exhaust India Limited, a joint venture engaged in the business of manufacture and sale of exhaust silencers and mufflers for Internal Combustion Engines.
2:5 bonus
At a meeting held on Thursday prior to the company's 50th AGM, the board recommended bonus shares in the proportion of two fully paid equity shares of Rs 2 each for every five existing shares of the same face value.
The item was discussed as an additional item with the permission of the Chair. The issue will be put up for shareholders approval for fixing of the date at an EGM to be held on September 9.
In the quarter under review, net sales of Cummins stood at Rs 1,021.9 crore, an increase of 12 per cent YoY. Domestic sales grew 8 per cent, while exports grew 26 per cent over Q1 last year.
Mr Anant J. Talaulicar, Chairman & Managing Director, said, “The company has demonstrated respectable sales growth despite the headwinds of higher interest rates and reduced liquidity. Margins have however been negatively impacted as commodities and other input costs have escalated significantly.
“Our continued focus on improving efficiencies and reducing costs, as well as some price increases helped the company partially offset the significant input cost increases.”
On the BSE, the company's share opened slightly lower at Rs 595.55, and touched a high of Rs 650.90 before closing 0.66 per cent higher at Rs 614.35.