Cummins India's quarterly profit rises on strong demand

Cummins Inc.

Cummins Inc.

CMI

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- 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)