Cummins India's quarterly profit rises on higher demand for power generators

Cummins India

06/08/2024 15:04

BENGALURU, Aug 6 (Reuters) - Cummins India  CUMM.NS , a
unit of U.S.- based truck engine maker Cummins  CMI.N , reported
a 31% surge in first-quarter profit, driven by increasing
domestic demand for its power generators. 
    The company's consolidated profit after tax rose to 4.63
billion rupees (about $55 million) in the three months ended
June 30 from 3.54 rupees a year earlier. 
        Higher sales in its engines segment, which includes
power generator sets, boosted overall sales by 5% to 29.16
billion rupees. 
  
    The engine segment contributes to nearly 80% to overall
sales. 
        India's electricity generation hit record highs in the
April-June quarter - peak summer time for the country - fuelling
demand for power generators.
  
         Separately, analysts expect the company to benefit from
a transition to CPCB IV+ emission norms, effective from July 1.
The norms, which are part of the government's efforts to reduce
pollution, will apply to diesel generators with a power output
of up to 800 kilowatts, which comprise about 70% of Cummins'
products. 
  
    U.S.-based Cummins Inc  CMI.N  last week reported higher
sales in its power systems segment and forecast improved revenue
margins, boosted by demand in the power generation market.


($1 = 83.8850 Indian rupees)

 (Reporting by Manvi Pant in Bengaluru; Editing by Sonia Cheema)
 ((Manvi.Pant@thomsonreuters.com; +918447554364;))