Cummins India Limited Results for the quarter and year ended March 31, 2023

Cummins India Limited (NSE:CUMMINSIND) The Board of Directors of Cummins India Limited (CIL), at their meeting held today, reviewed and approved the financial results for the quarter and year ended March 31, 2023.

Performance Highlights (based on standalone financial results) for the quarter ended March 31, 2023:

• Total Sales for the quarter at ₹ 1,889 Cr. increased by 29% compared to the same quarter last year and decreased by 12% compared to the previous quarter.
• Domestic sales at ₹ 1,396 Cr. increased by 33% compared to the same quarter last year and decreased by 13% compared to the previous quarter.
• Exports Sales at ₹ 493 Cr. increased by 17% compared to the same quarter last year and decreased by 9% compared to the previous quarter.
• Profit before tax at ₹ 413 Cr. is higher by 69% compared to the same quarter last year and lower by 14% compared to the previous quarter.
• Profit after tax at ₹ 319 Cr. is higher by 68% compared to the same quarter last year and lower by 12% compared to the previous quarter.

Performance Highlights (based on standalone financial results) for the year ended March 31, 2023:

• Total Sales for the year at ₹ 7,612 Cr. increased by 26% compared to the last year.
• Domestic sales at ₹ 5,562 Cr. increased by 26% compared to the last year.
• Exports Sales at ₹ 2,050 Cr. increased by 27% compared to the last year.
• Profit before exceptions item and tax at ₹ 1,506 Cr. is higher by 46% compared to the last year.
• Profit before tax at ₹ 1,492 Cr. is higher by 29% compared to the last year.
• Profit after tax at ₹ 1,130 Cr. is higher by 27% compared to the last year.

Ashwath Ram, Managing Director, Cummins India Limited, said:

The Indian economy continues to be resilient amidst inflationary economic conditions, rising interest rates, and ongoing geo-political crises. Fiscal and monetary policy measures are conducive to sustaining the economic growth rate. With softening commodity prices, stable consumption provides optimism for sustaining the economic growth rate of the Indian economy. Government spending on infrastructure promotes various segments, resulting in better capacity utilization and early signs of private capex. Global end markets for export held up well for the year, while monetary policy actions by various central banks around the world to contain inflation may pose a challenge to consumption in the near term.

For the year ended March 31, 2023, CIL reported record revenue for the second financial year in a row, driven by strong domestic and export demand. This, coupled with pricing actions and prudent cost management, resulted in a record profit for the year. However, given the emission changes from July and continued supply chain challenges, especially for specific electronic and other components, we remain cautiously optimistic about the short to medium-term demand outlook.

The CPCB IV+ norms will become effective July 1, 2023, for gensets up to 800 kW. The company is ready with its products to meet the new emissions norms and is confident of offering the best-in-class products to its customers which will continue to deliver superior performance and meet the new emission norms.

Future Outlook:
For CPCB IV+ norms, the Central Pollution Control Board has allowed the sale of CPCB II generator sets until December 31, 2023, after which the Power Generation market will evolve based on the new emission norms. Further, the geo-political and supply chain conditions continue to be unpredictable. Though the Company is well-positioned to tackle any challenges with its strong balance sheet and prudent investments in technology, considering the uncertainty, it will not provide any guidance for FY’24 at this time.