Cummins India posts 79% jump in Q1 profit on strong engine sales

Cummins India

03/08/2023 12:06

Aug 3 (Reuters) - 
  
    Engine maker Cummins India  CUMM.NS  on Thursday reported an almost 79% increase in profit, led by the
strong sales in engines segment.
    The company's consolidated profit after tax was 3.54 billion rupees  ($42.8 million) in the three months
ended June 30, compared with 1.98 billion rupees a year earlier.
    Income from operations rose more than 31% to 21.85 billion rupees. Engines division, which accounts for
more than three-fourths of the revenue on a standalone basis, surged more than 31%.
    The local unit of the U.S. truck engine maker Cummins Inc  CMI.N  benefitted from the demand for diesel
engines as chip shortages eased and vehicle production rebounded.
    For further earnings highlights, click (Full Story)

KEY CONTEXT
    
    Rival Thermax  THMX.NS  posted a smaller-than-expected 1.7% rise in first-quarter profit, dragged by
slower sales growth and an exceptional cost, while others like ABB  ABB.NS  and Siemens  SIEM.NS  are yet to
report results.

PEER COMPARISON
    
                                   Valuation     Estimates (next 12   Analysts' sentiment             
                                   (next 12           months)                                         
                                   months)                                                            
                     RIC         PE     EV/EBI  Revenue     profit    Mean     # of     Stock to      Div
                                        TDA     growth      growth    rating   analyst  price target  yield
                                                                               s                      (%)
 Cummins India Ltd    CUMM.NS    41.13   37.09    13.81       4.90    BUY           11      1.15          1.32
 ABB India Ltd        ABB.NS     81.91   62.39    20.87      29.44    HOLD          21      1.17          0.12
 Siemens Ltd          SIEM.NS    62.29   46.87    13.50       8.48    HOLD          19      1.06          0.26
 Thermax Limited      THMX.NS    47.33   31.94    14.33      29.08    HOLD          22      1.15          0.38
 
** The mean of analyst ratings standardised to a scale of Strong Buy, Buy, Hold, Sell, and Strong Sell

** The ratio of the stock's last close to analysts' mean price target; a ratio above 1 means the stock is
trading above the PT
    
APRIL-JUNE STOCK PERFORMANCE
    
    
-- All data from Refinitiv

-- $1 = 82.7050 Indian rupees

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 (Reporting by Ashna Teresa Britto in Bengaluru; Editing by Dhanya Ann Thoppil)
 ((AshnaTeresa.Britto@thomsonreuters.com;))