Cummins India Q4 results: Net profit jumps 50% to Rs 530.5 crore

Cummins India

Diesel and natural gas engine maker Cummins India Ltd posted a 50 percent on-year rise in consolidated profit after tax at Rs 530.5 for the March quarter, supported by robust demand in domestic and international markets.

Revenue came in at Rs 2,319 crore, up 19.9 percent, Cummins said in an exchange filing.

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The company's earnings surpassed expectations. An average of four brokerages pegged the company's profit at Rs 350 crore, up 9.5 percent, while revenue was expected to rise 11.1 percent to Rs 2,140 crore.

The company also said that the board approved an interim dividend of Rs 20 for the financial year 2023-24.

"The Board has approved and recommended to members for their consideration and approval a Final Dividend of Rs. 20/- (1000%) per equity shares on 277,200,000 fully paid-up equity shares (Face Value Rs. 2/- each) for the Financial Year 2023-24 in addition to the interim dividend of Rs. 18/- per share declared on February 07, 2024," the company said in a statement.

The January-March period marks the fifth quarter in a row when Cummins India has been able to take advantage of the uptick in demand created by growth in private and public capital expenditure, along with an easing of execution issues, to post strong revenue.

The stock ended the day at Rs 3,834.50, unchanged from the previous session's close.

Market experts have said the switch to new emission norms may hit the topline of generator makers as geo-political and supply chain conditions remain unpredictable and getting new motors to meet CPCB IV+ norms would be difficult.

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The Central Pollution Control Board (CPCB) has extended the deadline for the ban on the sale of CPCB II generators to June 30 from December 31, 2023.