Pune: Cummins India Limited Results for Q2 2021-22

Pune, 1st November 2021: The Board of Directors of Cummins India Limited, at their meeting held today, reviewed and approved the financial results for the quarter ended September 30, 2021.

Performance Highlights (based on standalone financial results) for the quarter ended September 30, 2021:

• Total Sales for the quarter at ₹ 1,689 Cr. increased by 48% compared to the same quarter last year and 45% compared to the preceding quarter.
• Domestic sales at ₹ 1,250 Cr. improved by 68% compared to the same quarter last year and by 46% as compared to the preceding quarter.
• Exports Sales at ₹ 439 Cr. improved by 10% as compared to the same quarter last year and improved by 43% as compared to the preceding quarter.
• Profit before tax (before exceptional items) at ₹293Cr. is higher by 55% as compared to the same quarter last year and 71% as compared to the preceding quarter.
• Profit before tax (after exceptional items) at ₹ 293 Cr. is higher by 55% as compared to the same quarter last year and 3% lower as compared to the preceding quarter.

Ashwath Ram, Managing Director, Cummins India Limited, said: As the economy rebounds post COVID-19 Wave II, we see increased demand from key segments for domestic and export markets. The pace of economic recovery is visible, with strong GST collections sustaining above Rs 1 lac crore per month. With near normal monsoon, we expect that rural demand will be sustained. Similarly, the continued focus of the government on infrastructure is helping in economic recovery. With abating COVID-19, economic recovery is visible across various economy segments, and demand in some segments has reached or exceeded the pre Covid level. On the back of strong economic rebound, we had the highest ever quarterly revenue for the quarter under review. Our domestic and export revenue recorded strong growth, both year over year and sequentially.  We also saw the revival of demand in export markets.

Supply Chain remains constrained; however, there are improvements visible in some areas, especially on locally produced parts.  Rising commodity prices coupled with the recent development of shortages in silicon, polymers and coal may have a cascading impact on supply chain and material cost. We continue to leverage our globally integrated supply chain to mitigate this risk and lessen the possible effect of these changes on our business.

Our number one priority continues to be the safety and well-being of our employees, serving our customers and communities. 

Future Outlook:

The company is hopeful of improvement in economic activities based on:

1. The pace of vaccination in different states across India
2. The supply chain is slowly stabilizing and ramping up to meet rising demand
3.  Increase in government and private capex cycle
4. Recovery in broader consumption across various market segments

Given that current market conditions continue to remain uncertain, the visibility of complete end market recovery is somewhat limited, mainly due to anticipation of Wave 3e of COVID-19. Thus, the company is not providing full-year revenue guidance for FY 2022.

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