Cummins India Ltd. — Interim / Quarterly Report 2021

Jan 28, 2021

I

Ref: STEX/SECT/2021

January 28, 2021

The Relationship Manager,DCS-CRDBSE Limited,Phiroze _Jeejeebhoy T ewers,Dalal Street, Fort,Mumbai 400 001	National Stock Exchange of India Limitedth Floor,Exchange Plaza, 5Plot No. C/1, G Block,Sandra - Kurla Complex,Sandra (East),Mumbai 400 051
BSE Scrip Code: 500480	NSE Symbol: CUMMINSIND

•

Subject: Outcome of the Board Meeting - Unaudited standalone and consolidated Financial Results and Limited Review Report for �he Quarter an_d nine months ending December 31, 2020, and declaration of Interim Dividend for FY 2020-21.

Dear Sir/ Madam,

1. Unaudited Financial Results with Auditors' Limited Review Report.

In terms of Regulation 30 read with Schedule Ill of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, we are enclosing a copy of the un-audited financial results (standalone and consolidated) for the quarter and nine months ended December 31, 2020. The Board of Directors have duly approved the results at their meeting held on January 28, 2021. We are also enclosing a copy of 'Limited Review' report given by the Statutory Auditors of the Company for the said results.

2. Interim Dividend for the FY 2020-21 and fixing of Record date.

We further wish to inform the exchange that the Board of Directors have declared an Interim Dividend of Rs. 7/- per equity shares on 277,200,000 equity shares (Face Value Rs. 2/- each) for the Financial Year 2020-21. The Dividend warrants for the said interim dividend will be dispatched by February 22, 2021 and the dividend will

be paid on February 24, 2021.

Cummins India Limited Registered Office Cummins India Office Campus Tower A, 5"' Floor, Survey No. 21, Balewadi Pune -411 0-45 Maharashtra, India Phone +91 20 67067000 Fax +91 20 67067015 cumminsindia.com cil.investors@cummins.com CIN : L211112PN1882PLC01227S

C. Further, in terms of Regulation 42 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, we are providing the details of "Record Date" for the above-mentioned interim dividend for the FY 2020-21 as follows:

StockExchange	ISecurityCode	IType ofSecurity	rRecord Date	rlPurpose
BSE	'500480-	Equity Sharesof the facevalue of Rs. 2/-each fully paid.	February 10,	For the paymentof interimdividend(FY 2020-21) of
NSEI	CUMMINSIND		2021(Wednesday)	Rs. 7/- per equityshare on277,200,000equity sharesface value of Rs.2/- each._J

"" \ :---;..-.-... ' .J/ ., (. .�� . q ,

,,,,,,.,- ......... �·(.,, c,F:.( ' ...... � \ 2. - ! � .. ·;) \ ' 0 V'-.. /Q/

. . . �-·

Kindly take this intimation on your record.

Thanking you,

Yours faithfully, For Cummins India Limited

-� ---- * / Vi nay . Joshi ,_Pu r, .:-.,.... Com any Secretary and Compliance Officer

Encl.: As above.

Cummins India Limited Registered Office Cummins India Office Campus Tower A, 5"' Floor, Survey No. 21, Balewadi Pune -411 045 Maharashtra, India Phone +91 20 67067000 Fax +91 20 67067015 cumminsindia.com cil.investons@cummins.com CIN: l..28112PN11le2PLC01227S

Independent Auditor's Review Report on the Quarterly and Year to Date Unaudited Consolidated Financial Results of the Company Pursuant to the Regulation 33 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, as amended

Review Report to The Board of Directors Cummins India Limited

• I. We have reviewed the accompanying Statement of Unaudited Consolidated Financial Results of Cummins India Limited (the "Holding Company") and its subsidiary (the Holding Company and its subsidiary together referred to as "the Group"), its associate and joint ventures for the quarter ended December 31, 2020 and year to date from April O I, 2020 to December 31, 2020 (the "Statement") attached herewith, being submitted by the Holding Company pursuant to the requirements of Regulation 33 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, as amended (the "Listing Regulations").
• 1. This Statement, which is the responsibility of the Holding Company's Management and approved by the Holding Company's Board of Directors, has been prepared in accordance with the recognition and measurement principles laid down in Indian Accounting Standard 34, (Ind AS 34) "Interim Financial Reporting" prescribed under Section 133 of the Companies Act, 2013 as amended, read with relevant rules issued thereunder and other accounting principles generally accepted in India. Our responsibility is to express a conclusion on the Statement based on our review.
• 1. We conducted our review of the Statement in accordance with the Standard on Review Engagements (SRE) 24 I 0, "Review of Interim Financial Information Performed by the Independent Auditor of the Entity" issued by the Institute of Chartered Accountants of India. This standard requires that we plan and perform the review to obtain moderate assurance as to whether the Statement is free of material misstatement. A review of interim financial information consists of making inquiries, primarily of persons responsible for financial and accounting matters, and applying analytical and other review procedures. A review is substantially less in scope than an audit conducted in accordance with Standards on Auditing and consequently does not enable us to obtain assurance that we would become aware of all significant matters that might be identified in an audit. Accordingly, we do not express an audit opinion.

We also performed procedures in accordance with the Circular No. CI R/CFD/CMD I /44/2019 dated March 29, 2019 issued by the Securities and Exchange Board of India under Regulation 33(8) of the Listing Regulations, to the extent applicable.

	As at December 31, 2020
Name of the entity	% holding	Consolidated as
Cummins Sales & Service Private Limited	100%	Subsidiary
Cummins Generator Technologies India Private Limited	48.54%	Associate
Valvoline Cummins Private Limited	50%	Joint Venture
Cummins Research and Technology India Private Limited	50%	Joint Venture

1. The Statement includes the results of the following entities:

SR BC& CO LLP

Chartered Accountants

• 5. Based on our review conducted and procedures performed as stated in paragraph 3 above, nothing has come to our attention that causes us to believe that the accompanying Statement, prepared in accordance with recognition and measurement principles laid down in the aforesaid Indian Accounting Standards ('Ind AS') specified under Section 133 of the Companies Act, 2013, as amended, read with relevant rules issued thereunder and other accounting principles generally accepted in India, has not disclosed the information required to be disclosed in terms of the Listing Regulations, including the manner in which it is to be disclosed, or that it contains any material misstatement.
• 6. The accompanying Statement includes unaudited interim financial results and other unaudited financial information in respect of:
  • one subsidiary, whose interim financial results and other financial information reflect total revenues of Rs. 2,349 lakhs and Rs. 6,019 lakhs, total net profit after tax of Rs. 68 lakhs and total net loss after tax of Rs. ( 19) lakhs, total comprehensive income of Rs. 45 lakhs and total comprehensive loss of Rs. ( 42) lakhs, for the quarter ended December 31, 2020 and the period ended on that date respectively.
  • one associate and one joint venture, whose interim financial results includes the Group's share of net profit of Rs. 1,063 lakhs and Rs. 2,124 lakhs and Group's share of total comprehensive income of Rs. 1,044 lakhs and Rs. 2,055 lakhs for the quarter ended December 31, 2020 and for the period ended on that date respectively.

The unaudited interim financial results and other unaudited financial information have been approved and furnished to us by the Management and our conclusion on the Statement, in so far as it relates to the affairs of this subsidiary, joint venture and associate, is based solely on such unaudited interim financial results and other unaudited financial information. According to the information and explanations given to us by the Management, these interim financial results are not material to the Group.

Our conclusion on the Statement in respect of matters stated above is not modified with respect to the financial results certified by the Management.

per T 1devlal Khandelwal Partner Membership number: 501160 UDIN: 2\�0\6oAA-APIAL2.01.GJ

Place: Pune Date: January 28, 2021

CUMMINS INDIA LIMITED

Registered Office: Cummins India Office Campus, Tower A, 5th Floor, Survey No. 21, Balewadi, Pune 411045, Maharashtra, India

[CIN: L29112PN1962PLC012276]. Telephone: 020 67067000, Fax: 020 67067015,

Email : cil.investors@cummins.com, Website: www.cumminsindia.com .,

,.

Unaudited consolidated financial results for the quarter ended and nine months ended December 31, 2020

		If Lacsl
Particulars		Quarter ended		Nine months ended	Year ended
	December 31,2020	September 30,2020	December 31,2019	December 31,2020	December 31,20119	March 31, 2020
	(Unaudited)	(Unaudited)	(Unaudited)	(Unaudited)	(Unauidited)	(Audited)
1 Income
(a) Revenue from operations
Sales/Income from operations	1,40,666	1, 15,126	1,43,154	3,04,666	4,05,395	5,09,587
Other operating income	2,436	1,873	2,481	5,717	7,504	9,558
(b) Other income (Note 5)	6,055	5,799	6,292	21,525	19,047	25,749
Total Income	1,49,157	1,22,798	1,51,927	3,31,908	4,31,946	5,44,894
2 Expenses
(a) Cost of materials consumed	69,911	68,373	62,168	1,64, 147	1,99,778	2,58,799
(b) Purchases c,f traded goods	15,667	7,994	23,817	26,060	61,756	74,718
(c) Change in inventories of finished goods, work-in-progress and traded goods	6,078	(4,286)	8,094	2,759	6,937	3,662
(e) Employee benefits expense	12,911	12,321	14,628	37,174	43,305	57,775
(f) Finance cost	483	404	483	1,330	1,594	2,102
(g) Depreciation and amortisation expense	3,235	3,301	3,001	9,615	8,932	12,058
(h) Other expenses (Note 6)	14,323	15,738	15,283	38,979	48,951	65,273
Total expenses	1,22,608	1,03,845	1,27,474	2,80,064	3,71,253	4,74,387
3 Profit before exceptional items and tax (1-2)	26,549-	18,953-	24,453	51,844-	60,693	70,507
4 Exceptional items (Note 4)	26,549		1,605		1,605	1,985
5 Profit after excEiptional items before share of profit of joint ventures and associate andbefore tax (3-4)		18,953	22,848	51,844	59,088	68,522
6 Share of profit of joint ventures and associate after tax	4,423	2,646	2,957	7,833	9,327	12,226
7 Profit before tH (5-6)	30,972	21,599	25,805	59,677	68,415	80,748
8 Tax expense
(a) Current tax	6,716	4,689	4,920	13,053	13,104	15,899
(b) Deferred tax(c) Tax for earli,er years	227-	(406)-	906(9)	(23)-	1,783(9)	(5,703)
Total tax expem,es	6,943	4,283	5,817	13,030	14,878	(9)10,187
9 Profit after tax ('7-8)	24,029	17,316	19,988	46,647	53,537	70,561
10 Other comprehensive income/ (expense)	(399)	576	(396)	(460)	(1,211)	(2,371)
11 Income tax effect	100	(144)	100	116	305	597
12 Net other comp1rehensive income/(expense) not to be reclassified to profit or loss in	(299)	432	(296)	(344)	(906)	(1,774)
subsequent periods, net of tax (10+11)
13 Share in joint venture's and associate's OCI after tax (net) not to be reclassified to profit or lossin subsequent periods	(19)	(26)	(17)	(71)	(53)	(50)
14 Other comprehunsive income/ (expense) for the year, net of tax (12+13)	(318)	406	(313)	(415)	(959)	(1,824)
15 Total comprehensive income for the year, net of tax (9+14)	23,711	17,722	19,675	46,232	52,578	68,737
16 Paid-up equity share capital (Face value, 2 each)	5,544	5,544	5,544	5,544	5,544	5,544
17 Other equity						4,34,660
18 Earnings per share
Basic and diluted EPS for the period on net profit (Not annualized) (i!')	8.67	6.25	7.21	16.83	19.31	25.45

CUMMINS INDIA LIMITED

Registered Office: Cummins India Office Campus, Tower A, 5th Floor, Survey No. 21, Balewadi, Pune 411045, Maharashtra, India

[CIN: L29112PN1962PLC012276], Telephone: 020 67067000, Fax: 020 67067015, Email: cil.lnvestors@cummins.com, Website: www.cumminsindia.com

Unaudited standalone financial results for the quarter and nine months ended December 31, 2020

						(f Lacs)
Particulars		Quarter ended			Nine months ended	Year ended
	2020	December 31, September 30, December 31,2020	2019	2020	2019	December 31, December 31, March 31, 2020
	(Unaudited)	(Unaudited)	(Unaudited)	(Unaudited)	(Unaudited)	(Audited)
1 Income
(a) Revenue, from operations
Sales:/lncome from operations	1,39,984	1,14,133	1,42,847	3,02,523	4,02,939	5,06,160
Other operating income	2,450	1,886	2,497	5,750	7,550	9,613
(b) Other irn;ome (Note 5)	9,842	5,797	7,228	25,856	24,176	33,154
Total lncomt!	1,52,276	1,21,816	1,52,572	3,34,129	4,,34,665	5,48,927
2 Expenses
(a) Cost of materials consumed	70,405	68,780	62,865	1,65,245	2,01 ,740	2,61,255
(b) Purchases of traded goods	15,127	7,366	23,464	24,618	59,597	72,186
(c) Change in inventories of finished goods, work-in-progress and traded goods	6,082	(4,275)	8,267	2,894	7,009	3,344
(d) Employe1e benefits expense	12,515	11,893	14,156	35,903	41,986	56,018
(e) Finance cost	458	402	465	1,291	1,536	2,025
(f) Depreciation and amortisation expense	3,196	3,267	2,955	9,494	8,791	11,866
(g) Other expenses (Note 6)	14,132	15,515	15,017	38,410	48,197	64,342
Total expem,es	1,21,915	1,02,948	1,27,189	2,n,855	3,,68,856	4,71,036
3 Profit before, exceptional items and tax (1-2)	30,361	18,868	25,383	56,274	65,809	77,891
4 Exceptional items (Note 4)	-	-	1,605	-	1,605	1,985
5 Profit before, tax (3-4)	30,361	18,868	23,778	56,274	64,204	75,906
6 Tax expense!
(a) Current tax	6,716	4,707	4,660	13,053	11,940	14,253
(b) Deferred tax	238	(394)	494	3	1,161	(1,281)
Total tax expenses	6,954	4,313	5,154	13,056	13,101	12,972
7 Profit after tax ( 5-6)	23,407	14,555	18,624	43,218	51,103	62,934
8 Other compri�hensive income I (expense)	(369)	576	(393)	(430)	(1,203)	(2,348)
9 Income tax effect	92	(144)	99	108	303	591
10 Net Other cc,mprehensive Income / (expense) not to be reclassified to profit or loss insubsequent periods, net of tax (8+9)	(277)	432	(294)	(322)	(900)	(1,757)
11 Total comprehensive income for the year, net of tax (7+10)	23,130	14,987	18,330	42,896	50,203	s1,1n
12 Paid-up equily share capital (Face value , 2 each)	5,544	5,544	5,544	5,544	5,544	5,544
13 Other equity						4, 11,952
14 Earnings per share
Basic and diluted EPS for the period on net profit (Not annualized) (')	8.44	5.25	6.72	15.59	18.44	22.70

Notes

1 The consolidated financial resuHs include results of the follo'-Ning companies

Name of the Company	As 11 December 31 2020			As 11 Seotember 30 2020		As II March 31 2020	As at Decamber 31 2019
	% holdinD	Consolidated as	% holdina	Consolidated as	% holdlna	Consolidated as	% holdinn	Consolidated as
Cummins Sales & Service Private Limited	100%	Subsidiary	100%	Subsidiary	100%	Subsidiary	100%	Subsidiary
Cummins Generator Technologies India Private Limited	48.54%	Associate	48.54%	Associate	48.54%	Associate	48.54%	Associate
Valvoline Cummins Private Limited	50%	Joint Venture	50%	Joint Venture	50%	Joint Venture	50%	Joint Venture
Cummins Research and Technoloav India Private Limited	50%	Joint Venture	50%	Joint Venture	50%	Joint Venture	50%	Joint Venture

2 This statement has been revie'Mld by the Audit Corrmittee and approved by the Board of Directors at its meeting held on January 28, 2021.

3 Operating segment information:

On a review of all the relevant aspects including, in particular, the system of internal financial reporting to the Board of Directors, which is the Chief Operating Decision Maker fCODM'), and considering the economic characteristics of the operations, the Group is of the view that it operates in l'NO segments viz. 'Engines' and 'Lubes'. Lubes segment comprises of a joint venture viz. Valvoline Currmins Private Limited, which is accounted for as per equity method under relevant Ind AS standard. The CODM evak.Jates the Group's performance based on an analysis of various parameters. Engine segment comprises of Currmins India Limited and other Group Companies v.tiich have been aggregated considering the nature of products, class of customer etc.

Follov.ing infonnation is provided to the CODM for Lubes segment for monitoring its perfonnance:

Particulars		Quarter ended				(f Lacs)Year ended
	December 31,2020	September 30,2020	December 31,2019	December 31,2020	Nine months endedDecember 31,2019	March 31, 2020
	(Unaudited)	(Unaudited)	(Unaudited)	(Unaudited)	(Unaudited)	(Audited)
sales
Engines	1,40,666	1,15,126	1,43,154	3,04,666	4,05,395	5,09,587
Lubes*	42 438	27 954	34 844	90 032	1 01 025	1 29 418
Total	1,83,104	1,43,080	1,77,998	3,94,698	5,06,420	6,39,005
Less: Elirrination/Adiustments	42 438	27 954	34 844	90 032	1 01 025	1 29 418
Net sales	1,40,666	1,15,126	1,43,154	3,04,666	4,05,395	5,09,587
Profit before tax
Engines	27,613	20,078	23,382	53,969	62,054	72,788
Lubes'"	9 034	4 117	6 526	15 394	16 893	21 202
Total	36,647	24,195	29,908	69,363	78,947	93,990
Less: Elimination/Adiustments	5 675	2 596	4 103	9 686	10 532	13 242
Total Profit before tax	30,972	21,599	25,805	59,677	68,415	80,748
Profit after tax
Engines	20,670	15,795	17,565	40,939	47,176	62,601
Lubes*	8 719	3 043	4 846	11 417	12 722	15 921
Total	27,389	18,838	22,411	52,356	59,898	78,522
Less: Elimination/Adjustments	3 360	1 522	2 423	5 709	6 361	7 961
Total Profit alter tax	24,029	17,316	19,988	46,647	53,537	70,561

• The above numbers represent full numbers in the Statement of Profit and Loss of Valvoline Cummins Private Limited and are not Group's proportionate share.

4 Exceptional items for the quarter and nine months ended December 31, 2019 include expense on account of Voluntary Retirement Program (-VRP-) aggregating to f 1,605 Lacs. In addition to VRP, the exceptional items for the year ended March 31, 2020 include expense on Reduction in Force aggregating to f 380 Lacs.

5 Other income for the nine months ended December 31, 2020 includes interest on income tax refund amounting to f 3,556 lacs.

6 Other expenses for the quarter ended September 30, 2020 and nine months ended December 31, 2020 include an amount off 2,319 lacs pertaining to 'Mite off of certain old unusa�e tangible assets (net book value).

7 Government of India's Code for Social Security 2020 (the 'Code') received assent from the President in September 2020. Ho11.iever, the date from 'Nhen the Code YJill become applicable and the Rules have not yet been notified. The Group '-Nill assess the irT'f)act of the Code and account for the same once the effective date and the rules are notified.

8 The Board of Directors of the Company at their meeting held on January 28, 2021 declared an interim dividend off 7 per equity share on 277,200,000 shares off 2 each fully paid-up for the financial year 2020-21.

Managing Director DIN: 00149501

Pune Date: January 28, 2021