Cummins India Profit up 20% at Rs 304 Cr in Q3

Cummins India Ltd has reported a profit before tax (excluding exceptional items) at Rs 304 crore, up 20 per cent during the third quarter of FY21, as compared to the same quarter last year on the back of economic recovery from the impact of COVID in construction, power generation and mining segments.

The company’s total sales for the quarter stood at Rs 1,400 crore, declined by 2 per cent in Q3 FY21, against the same period previous year.

Also, the domestic sales of the company stood at Rs 1,026 crore in October-December quarter of FY21, declined by 3 per cent, as compared to Q3 FY20.

However, its exports sales stood at Rs 374 crore, improved marginally by 1 per cent during Q3 FY21, as against the same quarter last year.

Commenting on the company’s performance, Ashwath Ram, Managing Director, Cummins India Limited, said, “on the back of economic recovery from the impact of COVID, some of our key segments reported strong recovery. That coupled with near normal operations enabled us to deliver strong Q3 results. Our domestic business continues to report strong sequential growth (in Q3 up 38%). Our Q3 revenue is up to 97% of last year’s revenue for the same period. This was led by recovery in construction, power generation and mining segments.”

On exports, he said “export business is holding on and is slightly better than same period last year but declined sequentially due to soft end market demand. As the pandemic continues and new strains of virus emerge, we are closely watching our end markets to determine their impact on current and future quarters.”

“As the economy rebounds, we are well positioned to sustain our technology driven market leadership across all segments of our business. While supply chain disruptions need to be managed effectively, especially those faced by the global market in electronic parts, we continue to work closely with our supply chain partners to restore capacities in the shortest possible time,” Ram added.

Meanwhile, the company has not provided full year revenue guidance for FY 2021, citing as market conditions continue to remain uncertain and visibility for end market recovery still somewhat limited. However, it is expecting gradual recovery of demand in upcoming quarters.