MUMBAI, 11 FEBRUARY, 2023 (GPN): Auto ancillary stock Cummins India Ltd having a market valuation of Rs 40,896.70 Cr, Cummins India Ltd. is a large-cap company that engages in the auto ancillary industry. The nation’s top producer of diesel and natural gas engines is Cummins India Limited. Today, the company announced its Q3 earnings and declared a dividend of Rs. 12 per share for the fiscal year 2022–2023.

Cummins India said in a stock exchange filing that “the Board of Directors at their meeting held on February 08, 2023 have declared an Interim Dividend of Rs.12/- per equity shares on 277,200,000 equity shares (Face Value Rs. 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.”

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

Ashwath Ram, Managing Director, Cummins India Limited, said, “The demand momentum we saw in the earlier quarters continued across segments, including international markets during the quarter. With moderation in commodity costs, oil, and other industrial raw material coupled with easing inflation, the buoyant tax collections economy continues to sustain growth momentum. CIL services a broad spectrum of the economy, and we see continued demand from end markets like data centers, commercial real estate, rental, infrastructure, healthcare, and telecom, etc., Besides, Industrial sectors like mining, railways, construction, etc., demand is holding up. For the quarter ended December 31, 2022, CIL reported record quarterly revenue driven by strong domestic and export revenue coupled with prudent cost management resulting in record quarterly profit. We continue to see supply chain challenges, especially for specific electronic and other components. With geopolitical risk and inflation likely to slow down developed markets, we remain cautiously optimistic about the short to medium-term demand outlook.

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

Cummins India recorded a net expense of Rs 1,805.33 Cr in the quarter ended December 2022 compared to Rs 1,502.03 Cr in the quarter ended December 2021. Cummins India posted a profit before tax (PBT) of Rs 478.97 Cr in Q3FY23 compared to Rs 319.52 Cr in Q3FY22, representing a YoY growth of 50%, whereas the company’s net profit reached Rs 360.14 Cr in the quarter ended December 2022 compared to Rs 240.97 Cr in the year-ago quarter, representing a YoY growth of 50%.

Commenting on the future outlook, Ashwath Ram, Managing Director, Cummins India Limited, said, “The recent budget announced by the Government of India has a stronger outlay for the infrastructure sector, including railways, which is expected to create strong demand from various segments in the domestic market. India will reach a significant milestone in the Power Generation segment which will transition from CPCB II to CPCB IV+ emission norms effective July 1, 2023. Central Pollution Control Board has allowed the sale of CPCB II generator sets till December 31, 2023, post which the Power Generation market will evolve based on the new emission norms. Further, the geo-political and supply chain conditions continue to be unpredictable. Though the Company is well-positioned to tackle any challenges with its strong financial position, considering the uncertainty, it will not provide any guidance for FY’ 24 at this time.”