homebusiness Newscompanies NewsCummins India says supply chain challenges may defer revenues in some segments
Cummins India says supply chain challenges may defer revenues in some segments
Ajay Patil, the company's VP & Chief Financial Officer-India ABO told CNBC-TV18 that the focus is on consistently improving margins every year.
Pune-based Cummins India continues to face supply chain challenges in specific components that could defer revenues, Ajay Patil, the company's VP & Chief Financial Officer-India ABO told CNBC-TV18.
"On the supply side, there are specific electronic components that we are currently managing demand for, meaning we are not receiving the exact quantities we desire. However, this is not affecting order statuses; it only defers revenue," he said.
However, Patil maintained the growth guidance saying, "We are maintaining our guidance on 2X of GDP, as stated in the conference call. The half-yearly results align with that guidance."
Patil talked about the company's aim to focus on expanding margins every year. "Our focus is on achieving profitable growth, and the margin is an indication of that growth. I can't specify the exact number of basis points for margin expansion, but our approach is to grow profitably," he noted.
On November 7, the company reported a 30.4% year-on-year (YoY) increase in standalone net profit at ₹328.5 crore for the second quarter ending on September 30, 2023. The revenue from operations reached ₹1,899 crore. Earnings before interest, tax, depreciation, and amortisation (EBITDA) stood at ₹338 crore while EBITDA margin was 17.8%.
This company currently has a market capitalisation of ₹53,221 crore and it competes with Kirloskar Oil Engines, and Greaves Cotton, among others.
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(Edited by : Shweta Mungre)
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