Auto Ancillary Stock Cummins India declares Q3 dividend of ₹12, PAT up 50%

Cummins India said in a stock exchange filing that “The Board of Directors at its meeting held on February 08, 2023, has declared an interim dividend of Rs 12/- per Equity Share on 277,200,000 Equity Shares (Face Value 2/- each).” for the financial year 2022-23. The dividend warrants for the said interim dividend will be dispatched by March 06, 2023 and the dividend will be paid on March 08, 2023.”

The company has fixed February 21, 2023 (Tuesday) as the record date for payment of interim dividend (FY 2022-23).

On a standalone basis, Cummins India posted revenue from operations of 2,144.11 crore in Q3FY23 as compared to Rs. 1,700.67 Cr in Q3FY22, representing a YoY growth of 26%, while the company’s domestic sales reached 1,603 Cr up 27% over the same quarter last year and up 15% over the previous quarter or Q2FY23. Company’s export sales recorded 541 Cr in Q3FY23 up 23% over same quarter last year and up 2% over previous quarter.

Cummins India records net expense 1,805.33 crore in the quarter ending December 2022 as compared to Rs. 1,502.03 crore in the quarter ending December 2021. Cummins India posted profit before tax (PBT) 478.97 Cr in Q3FY23 as compared to Rs. 319.52 Cr in Q3FY22, representing a YoY growth of 50%, while the company’s net profit reached 360.14 crore in the quarter ending December 2022 as compared to 240,97 Cr over the year-ago quarter, representing a YoY growth of 50%.

Ashwath Ram, Managing Director, Cummins India Ltd. said, “The demand momentum we saw in previous quarters continued during the quarter across all segments, including international markets. Along with softening commodity costs, oil and other industrial raw materials With inflation coming down, buoyant tax collections continue to sustain the growth momentum in the economy. CIL serves a broad spectrum of the economy, and we are involved in data centres, commercial real estate, rental, infrastructure, healthcare and telecom, etc. In addition, industrial sectors such as mining, railways, construction, etc., are picking up demand. For the quarter ending December 31, 2022, CIL projects strong domestic and Reported record quarterly revenue, driven by export revenue, resulting in record quarterly profit. We continue to see supply chain challenges, particularly for specialty electronic and other components. Geopolitical risks and inflation slowing developed markets to do We remain cautiously optimistic about the short to medium term demand outlook.”

Commenting on Cummins India’s future outlook, Ashwath Ram said, “The recently announced budget by the Government of India has a strong outlay for the infrastructure sector, including railways, which is expected to generate strong demand from various sectors in the domestic market.” India is expected to reach a significant milestone in the power generation segment, transitioning from CPCB II to CPCB IV+ emission norms from July 1, 2023. The Central Pollution Control Board has set CPCB II generator sets by December 31, 2023. The sale is permitted, following which the power generation market will evolve based on the new emission norms. In addition, geopolitical and supply chain conditions remain unpredictable. However, the company with its strong financial position is well prepared to meet any challenges. Given the uncertainty, it will not provide any guidance for FY24 at this time.”

Cummins India Limited shares closed today on NSE 1,477.90 each level, up 2.16% from the previous close 1,446.65.