Shares of engine manufacturer Cummins India spurted more than nine percent to hit a 52-week high on Thursday after the December quarter numbers beat the Street estimates.
The Pune-based Cummins group company, reported nearly 50 percent year-on-year growth in net profit at Rs 360.41 crore for the December quarter, beating the CNBC-TV18 poll estimates of Rs 268 crore.
Its revenue at Rs 2,180.5 crore in the third quarter of FY23 was also 11.8 percent higher than the poll estimate of Rs 1,950 crore. The revenue was 26 percent higher YoY as against Rs 1,735 crore in the year-ago quarter.
The company’s earnings before interest, taxes, depreciation, and amortization (EBITDA) stood at Rs 412.2 crore in Q3FY23, an upside of 36 percent over the poll estimate of Rs 303 crore for the quarter and up 52 percent year-on-year as against Rs 271 crore a year ago.
Margins were also higher at 18.9 percent than the poll estimate of 15.6 percent.
The company stated that its total sales increased by 26 percent to rs 2,144 crore in the quarter over the year-ago period. While domestic sales jumped 27 percent year-on-year to Rs 1,603 crore, exports rose by 23 percent to Rs 541 crore.
The company stated that the demand momentum continued across segments, including international markets during the quarter. The company said that it’s on track to meet its FY23 revenue growth aspiration of GDP. The company is cautiously optimistic and watchful for softening of the capex cycle. Margins were better in Q3FY23 due to better execution and supply chain challenges easing.
On the outlook, Cummins India said that the Union Budget has a stronger outlay for the infrastructure sector which would create strong demand from various segments in the domestic market.
Cummins India shares spurted by 9.6 percent to hit a 52-week of Rs 1,618 in morning trade on Thursday as the trading volume soared by over 11 times. The stock was trading at Rs 1572.95, up 6.62 percent, on BSE at 11.29 AM.
