Cummins India Q2 net profit marginally down

Cummins India is a manufacturing company that manufactures diesel engines. The company caters to Power Generation, Industrial and Automotive Markets and also to the growing market for gas and dual fuel engines. The company provides diesel and gas engines, products, packages, services and solutions for up time of Cummins equipments.

Recently, Cummins India announced its Q2FY16 results, wherein the net sales of the Company for the quarter ended September 30, 2015 stood at Rs. 1167 crores grew by 4 per cent as compared to Rs. 1117 crores recorded in the same period last year. The total expenses rose by 4.35 per cent to Rs 1017 crore on yearly basis.

The EBITDA increased by 5.69 per cent to Rs 200.72 crore. The EBITDA margin expanded by 16 basis points to 16.76 per cent Y-o-Y basis. The Profit before interest and taxes increased by 6.62 per cent to Rs 180.76 crore, the other income of Cummins reduced by 17.44 per cent to Rs 59.97 crore on yearly basis. Tax expenses rose by 8 per cent to Rs 42 crore y-o-y. The Net Profit of the company marginally reduced by 1.87 per cent to Rs 198.62 crore in Q2FY16 against Rs 202.4 crore in Q2FY15.

Commenting on results Anant J. Talaulicar, Chairman & Managing Director, Cummins India, said, “We are seeing gradual improvements in our domestic market as compared to a year ago, but the growth is not robust yet. The global economy is sluggish and has impacted our exports. Our domestic business recorded a 14 percent growth as compared to the same period last year, but declined 3 percent as compared to the earlier quarter reflecting the tentative pace of investments in the capital goods sector. With these uncertainties in the overall global economy which seem likely to continue into the short to medium term future, we intend to further strengthen our focus on market share gains, and cost efficiency. The Company is strongly positioned to win in our markets based on our focus on helping our customers succeed, our technology and diverse, talented employee base.”

The FII holdings of Cummins increased by 19 basis points to 17.1 per cent, DII holdings reduced by 11 basis points to 18.08 per cent as on 30th September 2015. Today, Cummins India is trading at Rs 1038.45 , around 2 per cent down on BSE.