Cummins India posts higher Q3 profit on demand recovery

Cummins India

07/02/2024 16:14

BENGALURU, Feb 7 (Reuters) - Cummins India  CUMM.NS 
reported a 20.6% rise in third-quarter profit on Wednesday, as
demand for its engines and power generator sets recovered
following a hit from new emissions norms. 
        The Indian unit of U.S. truck engine maker Cummins
 CMI.N  posted a consolidated profit after tax of 4.99 billion
rupees ($60.2 million) for the quarter ended Dec. 31 from 4.14
billion rupees a year earlier.
    Sales rose 16.8% to 25.10 billion rupees on the back of
stable demand for its newly launched and more expensive power
generator sets. 
    The company said in November that it was expecting demand
for engines to remain steady for the rest of the year.    
    Cummins India's sales in previous quarters were partly hurt
by emission norms that came into effect on July 1, 2023, which
made its products 20-25% more expensive, according to analysts.
    The norms target a near 90% reduction in emissions of
particulate matter and nitrogen oxide and are applicable to
generator sets with a power output of up to 800 kilowatts (KW),
which constitute 80% of Cummins' products.
     Total expenses in the reported quarter rose 13.2% to 20.48
billion rupees. 
    The company also declared a dividend of 18 rupees per share.
    Cummins' shares closed flat at 2,400.20 rupees ahead of the
results. They had risen over 42% in 2023.
    
    
($1 = 82.9510 Indian rupees)

 (Reporting by Anuran Sadhu in Bengaluru; Editing by Anil
D'Silva)
 ((Anuran.Sadhu@thomsonreuters.com; +91 8697274436;))