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 ended June 30, 2019.
Net sales of the Company for the quarter ended June 30, 2019 at ₹ 1,316 Cr, grew 2% as compared to ₹ 1,296 Cr recorded in the same quarter last year and is flat as compared to
₹ 1,314 Cr recorded in the preceding quarter.
Domestic sales in the current quarter at ₹ 990 Cr grew 16% over the same quarter last year and essentially remain flat as compared to ₹992 Cr, recorded in the preceding quarter. Exports for the current quarter at ₹ 327 Cr declined 26% over the same quarter last year and grew 1% over the preceding quarter.
Profit before tax in the current quarter at ₹ 194 Cr is 23% lower as compared to ₹ 254 Cr recorded in the same quarter last year, and 7% lower compared to ₹ 209 Cr recorded in the preceding quarter.
Sandeep Sinha, Managing Director, Cummins India Limited, said,
Domestic business registered strong growth over the previous year across all segments of the business- This could have been even more robust, however order intake was impacted by the liquidity crunch in the economy as shadow banks went into a crisis mode, as well as uncertainty prevailing in the run up to the elections led to a delay in projects approvals. This is likely to play out further for at least another quarter, but revival is expected, albeit gradually thereafter.
Our confidence on the medium to long term outlook on domestic sales, especially from the infrastructure sectors, is even higher as stated allocations from the fiscal union budget positively impact this sector.
Export markets have however displayed softness in recent quarters, arising from global economic challenges. In this quarter we also experienced decline in certain markets within the global Power generation business, where conditions became weak, based on difficulties that some of these economies are now experiencing.
We continue to be positioned to outperform in our industry and are investing judiciously in product enhancements, increasing our customer focus, while maintain strong controls on our cost of operations. Improving productivity and quality are strong focus areas as we continue delivering value to all our stakeholders.”
Link of the Press Release: https://www.bseindia.com/xml-data/corpfiling/AttachLive/8f4b86a7-7ebb-4898-ba6e-b33a8c25f848.pdf