Cummins India reports 61% jump in Q4 profit on robust domestic, international demand

Cummins India

24/05/2023 11:05

BENGALURU, May 24 (Reuters) -    Diesel and natural gas engines maker Cummins India Ltd
 CUMM.NS  posted a 61.3% rise in fourth-quarter profit after tax on Wednesday, supported by robust demand
in domestic and international markets.
    The company reported consolidated profit after tax at 3.49 billion rupees ($42.7 million) in the
three months ended March 31, compared to 2.16 billion rupees a year earlier.
    Income from operations jumped over 28% to 18.97 billion rupees.
    The company's board also declared a final dividend of 13 rupees per share.
    For further results highlights, click  urn:newsml:reuters.com:*:nFWN37K1R6
        
  
        WHY IT MATTERS
    
    The company, engaged in manufacturing engines for power generation, industrial and automotive
sectors, reported an uptick in demand for its diesel engines, benefitting from strong vehicle sales by
automotive companies as COVID-related disruptions and chip shortages eased.
    During the quarter, the company's domestic sales increased 33.5% year-on-year on a standalone basis,
while exports grew 16.6%. 
    Cummins counts Bhutan and Nepal as its international markets.
    
    
    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*  analysts  price     yield
                                                                                        target**  (%)
 Cummins India Ltd    CUMM.NS   38.85  34.71     13.91       8.49    Hold        13       1.09     1.04
 ABB India Ltd        ABB.NS    77.08  58.74     21.11      34.07    Hold        23       1.08     0.14
 Siemens Ltd          SIEM.NS   58.67  42.12     17.22      20.67    Hold        19       0.95     0.29
 Thermax Limited      THMX.NS   42.37  27.95     15.05      32.29    Hold        24       1.03     0.45
    
 * Mean of analysts' ratings standardised to a scale of Strong Buy, Buy, Hold, Sell, and Strong Sell
 ** Ratio of the stock's last close to analysts' mean price target; a ratio above 1 means the stock is
trading above the PT
    
    JAN-MARCH STOCK PERFORMANCE
  

    -- All data from Refinitiv
    -- $1 = 81.7800 rupees

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Cummins India shares vs peers    https://tmsnrt.rs/3MUXg5y
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 (Reporting by Priya Sagar in Bengaluru; Editing by Sonia Cheema)
 ((Priya.Sagar@thomsonreuters.com;))