Cummins India Limited Results for Q1 2018-19
Pune, INDIA, August 09, 2018: The Board of Directors of Cummins India Limited, at their meeting held today, took on record the unaudited financial results for the quarter ended June 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 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 quarter ended 30th June, 2017.
Net sales of the Company for the quarter ended June 30, 2018 at ₹ 1,296 Cr, declined by 1% as compared to ₹ 1,309 Cr recorded in the same quarter last year, and grew by 8% compared to ₹ 1,206 Cr recorded in the preceding quarter.
Domestic sales in the current quarter at ₹ 856 Cr declined by 7% over the same quarter last year and grew by 5% over the preceding quarter. Exports for the current quarter at ₹441 Cr grew 12% over the same quarter last year and by 13% over the preceding quarter.
Net profit before tax in the quarter ended Jun 30, 2018 is ₹ 254 Cr which is 11% higher as compared to ₹ 229 Cr recorded in the same quarter last year (excluding the gain on sale of real estate of ₹ 56 Cr in last year) and is 21% higher as compared to ₹ 209 Cr recorded in the preceding quarter.
Sandeep Sinha, Managing Director, Cummins India Limited, said, “Domestic sales in the current quarter declined 7% over the same quarter last year. However, the same quarter last year had a strong tailwind from pre-buy on account of impending GST implementation effective July 01, 2017. We are also carrying forward orders into the current quarter as few of our suppliers faced supply constraints. We expect fulfillment of these carry forward orders in the current quarter.
We are positive 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 12% over the comparable quarter in the previous year as well as 13% over the preceding quarter. We believe this is based on varying degrees of recovery taking place in the global economy, commodity markets and geographies. We believe this trend should continue into the medium term.
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.
