Cummins India posted a strong performance in the fourth quarter of financial year 2022-23. The standalone net profits zoomed 69 percent to Rs 319 crore compared with Rs 189 crore in the same quarter last year, led by pricing actions and cost management. The revenues jumped 29 percent year on year to Rs 1,926 crore and better than the CNBC-TV18 poll of Rs 1,805 crore.
Domestic sales at Rs 1,396 crore increased by 33 percent year on year, but decreased by 13 percent sequentially. Similarly, exports sales at Rs 493 crore increased by 17 percent year on year and decreased by 9 percent quarter on quarter.
Earnings before interest, tax, depreciation and amortisation (EBITDA) grew 58 percent to Rs 326 crore, while EBITDA margins improved 320 bps to Rs 17 percent compared with CNBC-TV18 poll of 16.3 percent.
The Board of Directors have recommended a final dividend of Rs 13 per equity share for the financial year ended on March 31, 2023, in addition to the interim dividend of Rs 12 per share declared on February 8, 2023. The said final dividend, if approved by the Members at the Annual General Meeting, will be paid on August 31, 2023.
The company maintains a cautious outlook. "Given the emission changes from July and continued supply chain challenges, especially for specific electronic and other components, we remain cautiously optimistic about the short to medium-term demand outlook."
The CPCB IV+ norms will become effective July 1, 2023, for gensets up to 800 kW. The company said it is ready with its products to meet the new emissions norms.
For CPCB IV+ norms, the Central Pollution Control Board has allowed the sale of CPCB II generator sets until December 31, 2023, after which the Power Generation market will evolve based on the new emission norms. Since, the geo-political and supply chain conditions continue to be unpredictable, Cummins India has refrained from providing any guidance for FY24.
The stock tumbled nearly 6 percent in the last hour of trade on May 24, post its results declaration.
