Cummins India's quarterly profit inches up as higher costs offset demand
Cummins India's quarterly profit inches up as higher costs offset demand Aug 5 (Reuters) - Engine maker Cummins India CUMM.NS reported a marginal rise in quarterly profit on Wednesday, as strong domestic demand across its power generation, industrial and automotive markets was largely overpowered by higher costs.
The company, a unit of U.S. truck engine maker Cummins CMI.N, posted a 0.83% rise in consolidated profit after tax to 6.09 billion rupees ($64.03 million) for the quarter ended June 30.
Income from operations rose 18.1% to 33.75 billion rupees.
Expenses rose at a faster pace of 22.8%, largely led by a jump in raw material costs.
Cummins also said that Managing Director Shveta Arya has stepped down to pursue external opportunities, while the company evaluates candidates for the position.
The company told Reuters in June that the U.S.-Iran war has raised production, commodity and logistics costs and weakened export demand due to supply-chain challenges.
Motilal Oswal analysts said Cummins is likely to benefit from rising demand for high horsepower engines for data center power generation in fiscal year 2027.
The company's share of profit from joint ventures and associates, net of tax, stood at 898.3 million rupees in the quarter, up from 652.8 million rupees a year earlier.
($1 = 95.1175 Indian rupees)
(Reporting by Abhirami G and Abhinav Parmar in Bengaluru; Editing by Sonia Cheema)
((abhirami.g@thomsonreuters.com))
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