Cummins India Limited Results for Q2 2018-19

30 oct 2018 Mumbai, INDIA: The Board of Directors of Cummins India Limited, at their meeting held today, took on record the unaudited financial results for the quarter and half year ended September 30, 2018.

Post implementation of GST from July 01, 2017, sales numbers are required to be disclosed without including the levy of GST. The published sales numbers in the quarter ended on 30th June, 2017 were inclusive of excise duty, hence published results for half year are not comparable. However, for the purpose of this press release, and to allow easy comparisons, the Company has excluded excise duty from the reported sales numbers in half year ended 30th September, 2017.

Net sales of the Company for the quarter ended September 30, 2018 at ₹ 1,452 Cr, which grew by 30% as compared to ₹ 1,118 Cr recorded in the same quarter last year, represent the highest sales ever achieved in a quarter and grew by 12% compared to ₹ 1,296 Cr recorded in the preceding quarter. Net sales for the half year ended September 30, 2018 at ₹ 2,748 Cr grew by 13% over same period last year’s sales of ₹ 2,428 Cr.

Domestic sales in the current quarter are again the highest achieved at ₹ 1,003 Cr, which grew by 34% over the same quarter last year and grew by 17% over the preceding quarter. Domestic sales for the half year ended September 30, 2018 at ₹ 1,859 Cr grew by 12% over the same period last year.

Exports for the current quarter at ₹448 Cr grew 21% over the same quarter last year and by 2% over the preceding quarter. Exports for the half year ended September 30, 2018 at ₹ 889 Cr grew by 16% over the same period last year.

Net profit before tax in the quarter ended September 30, 2018 is again at a record high of

₹ 298 Cr which is 53% higher as compared to ₹ 195 Cr recorded in the same quarter last year and is 18% higher as compared to ₹ 254 Cr recorded in the preceding quarter. Net profit before tax for the half year ended September 30, 2018 grew 30% to ₹ 552 Cr as compared to ₹ 424 Cr in the same period last year (excluding the gain on sale of real estate of ₹ 56 Cr in last year year).

Sandeep Sinha, Managing Director, Cummins India Limited, said, “Domestic sales in the current quarter at ₹ 1,003 Cr was the highest ever recorded. This is due to strong demand across all our three markets – Industrial, Powergen and Distribution. In this quarter we were also able to overcome certain execution constraints that we had encountered in the previous quarter. We are confident on the medium to long term outlook for domestic sales as underlying demand remains positive, arising from sustained investments by the government in creating infrastructure for the Indian economy.

Exports revenue improved for this quarter, growing 21% over the comparable quarter in the previous year and by 2% over the preceding quarter; as we have seen some recovery in the certain global Powergen market like Middle East and Africa.

We continue to be positioned to outperform in our industry and are investing judiciously in product enhancements, increasing our customer focus, while maintaining strong controls over our cost of operations, improved productivity and quality and positioning ourselves strongly to continue delivering value to all our stakeholders.”