Cummins India's quarterly profit rises on strong demand
Cummins Inc. CMI | 0.00 |
May 27 (Reuters) - Engine maker Cummins India CUMM.NS reported a nearly 23% rise in fourth-quarter profit on Wednesday, helped by strong demand for its products.
The company, a unit of U.S.-based truck engine maker Cummins Inc CMI.N, posted a profit of 6.49 billion rupees ($67.78 million) in the quarter ended March 31, from 5.29 billion rupees a year ago.
Cummins' Indian unit is a key supplier of power generation equipment to industrial clients. It also produces engines for trucks and ships, as well as propulsion systems for trains.
Analysts at Motilal Oswal had expected quarterly profit to rise on resilient domestic demand and sustained capital expenditure across key sectors.
Cummins India's income from operations rose 22% to 29.63 billion rupees, while expenses rose 21.3% driven by higher input costs.
Earlier this month, parent Cummins Inc lifted its annual revenue growth forecast, supported by resilient demand for its power-generation equipment and expectations of improving demand in the North American on-highway vehicles market.
Cummins India's shares rose more than 10% after it reported results.
($1 = 95.7550 Indian rupees)
