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Cummins India Ltd. Earnings Release 2020
60943_rns_2019-10-24_0cf4f577-e8d2-4b42-bff8-4a822aee54b1.pdf
Earnings Release
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Ref: STEX/SECT/2019
October 24, 2019
| The Relationship Manager,DCS-CRDBSE Limited,Phiroze Jeejeebhoy Towers,Dalal Street, Fort,Mumbai 400 001 | National Stock Exchange of India LimitedExchange Plaza, 5th Floor,Plot No. C/1, G Block,Bandra –Kurla Complex,Bandra (East),Mumbai 400 051 |
|---|---|
| BSE Scrip Code: 500480 | NSE Symbol: CUMMINSIND |
Subject: Press Release – October 24, 2019
Dear Sir/ Madam,
We are enclosing for your records a copy of the Press Release dated October 24, 2019 regarding standalone and consolidated un-audited financial results of the Company for the quarter and half year ended September 30, 2019.
Kindly take this intimation on your record.
Thanking you,
Yours faithfully, For Cummins India Limited HEMIKSHA BHOJWANI Digitally signed by HEMIKSHA BHOJWANI Date: 2019.10.24 12:35:16 +05'30'
Hemiksha Bhojwani Compliance Officer ICSI Membership Number: A22170
Encl.: As above.
(This letter is digitally signed).
Cummins India Limited Registered Office Cummins India Office Campus Tower A, 5th Floor, Survey No. 21, Balewadi Pune 411 045 Maharashtra, India Phone +91 20 67067000 Fax +91 20 67067015 cumminsindia.com [email protected] CIN : L29112PN1962PLC012276
CONTACT: Harmeet Mehra ([email protected]) +91 98231-39900 Neha Patil ([email protected]) +91 96195-06683
October 24th , 2019
Cummins India Limited Results for Q2 2019-20
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, 2019.
Net sales of the Company for the quarter ended September 30, 2019 at ₹ 1,285 Cr, declined 11% as compared to ₹ 1,452 Cr recorded in the same quarter last year and 2% compared to ₹ 1,316 Cr recorded in the preceding quarter. Net sales for the half year ended September 30, 2019 at ₹ 2,601 Cr declined 5% over same period last year's sales of ₹ 2,748 Cr.
Domestic sales in the current quarter at ₹ 947 Cr declined 6% over the same quarter last year and 4% compared to preceding quarter. Domestic sales for the half year ended September 30, 2019 at ₹ 1,937 Cr grew 4% over the same period last year. Exports for the current quarter at ₹ 337 Cr declined 25% over the same quarter last year however improved 3% over the preceding quarter. Exports sales for the half year ended September 30, 2019 at ₹ 664 Cr declined 25% over the same period last year.
Profit before tax in the current quarter at ₹ 210 Cr is 29% lower as compared to ₹ 298 Cr recorded in the same quarter last year and 8% higher as compared to ₹ 194 Cr recorded in the preceding quarter.
Ashwath Ram, Managing Director, Cummins India Limited, said:
The current sluggishness in the Indian economy arises from several factors including the prevailing liquidity situation, delays in awarding of infrastructure projects, banking sector including the shadow banks continuing to sort through their funding constraints. These factors have all resulted in reduction in demand across our key segments in the domestic business.
In our estimation this is likely to play out further for some time with a gradual revival thereafter. The Government has already undertaken significant actions to boost the economy, including allocating incremental funds to the execution of infrastructure projects, easing out liquidity as well as reduction in corporate tax rate, accompanied by interest rate cuts.
Our confidence on the medium to long term outlook on domestic sales, especially from the infrastructure sectors is high, once the fund allocations from the fiscal union budget, start to positively impact this sector.
Export markets have continued to display 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, based on difficulties that some of these economies are now experiencing.
We have initiated internal actions to curtail overall spending to essential only, as well as improving on the efficiency of our internal processes and product coverage, creating a strong environment of cost consciousness.
We continue to be positioned to outperform in our industry and continue investing judiciously in product enhancements, increasing our customer focus, while maintaining productivity and quality as strong focus areas, as we continue delivering value to all our stakeholders."
About Cummins India Limited
Cummins India Limited, headquartered in Pune since 1962, is the country's leading manufacturer of diesel and natural gas engines for power generation, industrial and automotive markets.
About Cummins Group in India
Cummins in India, a power leader, is a group of complementary business units that design, manufacture, distribute and service engines and related technologies, including fuel systems, air handling, filtration, emission solutions and electrical power generation systems. Its technology and pioneering initiatives are bringing innovative solutions and dependable services at the best possible value to users across the country. Its high performance outlook is based on customer focus, integrity and capability of its people. Part of the US $23.8 billion Cummins Inc., Cummins in India is a Group of seven legal entities across 200 locations in the country with a combined turnover of over ₹16,000 crores in 2018 and employing over 10,000 individuals.