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

Cummins India

07/11/2024 15:18

Nov 7 (Reuters) - Cummins India  CUMM.NS , a unit of
U.S.-based truck engine maker Cummins  CMI.N , reported a higher
second-quarter profit on Thursday, helped by robust demand for
its engines and power generators.  
    The diesel and natural gas engine maker's consolidated
profit after tax came in at 4.49 billion rupees ($53.3 million)
for the three months ended Sept. 30, up from 3.29 billion rupees
a year earlier.
    The company's revenue increased due to price hikes,
particularly for its CPCB 4+ generator sets, analysts said.
    These generator sets comply with the latest
environment-friendly emission standards set by India's federal
pollution control board. 
    A restock in inventory and steady demand across all its
segments helped increase volumes, analysts added.  
    Sales in its engine segment, which includes power generator
sets and contributes nearly 80% to overall sales, grew 30%
during the quarter.
    The segment boosted overall quarterly sales to 30.09 billion
rupees.
    India's infrastructure is growing in tandem with power
demand, ensuring that sales for the company's products remain
high despite price increases, the company had said in August. 
    Cummins India's income from operations grew 30% to 24.65
billion rupees in the second quarter. Costs of materials, which
account for more than half of its total expenses, rose 38.4%.
    Parent Cummins Inc beat third-quarter profit estimates
earlier this week, due to robust demand for its power generation
products. 
    Cummins' shares closed 1.6% lower ahead of the results and
have climbed 81% so far in 2024.
    
    
($1 = 84.2900 Indian rupees)

 (Reporting by Meenakshi Maidas and Kashish Tandon in Bengaluru;
Editing by Abinaya Vijayaraghavan and Shreya Biswas)
 ((Meenakshi.Maidas@thomsonreuters.com; +91 8921483410;))