Cummins India Ltd’s Board of Directors recently reviewed and approved the financial results for the quarter and year ended March 31, 2023. Total Sales for the year ended March 31, 2023, at INR 7,612 crore increased by 26 percent compared to the last year. Domestic sales at INR 5,562 crore increased by 26 percent compared to last year. Exports Sales at INR 2,050 crore increased by 27 percent compared to last year. Profit before exceptions item and tax at INR 1,506 crore is higher by 46 percent compared to the last year. Profit before tax at INR 1,492 crore is higher by 29 percent compared to the last year. Profit after tax at INR 1,130 crore is higher by 27 percent compared to the last year.

Total Sales for the quarter ended March 31, 2023, at INR 1,889 crore, increased by 29 percent compared to the same quarter last year and decreased by 12 percent compared to the previous quarter. Domestic sales at INR 1,396 crore increased by 33 percent compared to the same quarter last year and decreased by 13 percent compared to the previous quarter. Exports Sales at INR 493 crore increased by 17 percent compared to the same quarter last year and decreased by 9 percent compared to the previous quarter. Profit before tax at INR 413 crore is higher by 69 percent compared to the same quarter last year and lower by 14 percent compared to the previous quarter. Profit after tax at INR 319 crore is higher by 68 percent compared to the same quarter last year and lower by 12 percent compared to the previous quarter.

For CPCB IV+ norms, the Central Pollution Control Board has allowed the sale of CPCB II generator sets until December 31, 2023, after which the Power Generation market will evolve based on the new emission norms. Further, geopolitical and supply chain conditions continue to be unpredictable. Though the company is well-positioned to tackle any challenges with its strong balance sheet and prudent investments in technology, considering the uncertainty, it will not provide any guidance for FY’24 at this time.

Stating that the Indian economy continues to be resilient amidst inflationary economic conditions, rising interest rates, and ongoing geo-political crises, Ashwath Ram, Managing Director, CIL, said, “Fiscal and monetary policy measures are conducive to sustaining the economic growth rate. With softening commodity prices, stable consumption provides optimism for sustaining the economic growth rate of the Indian economy. Government spending on infrastructure promotes various segments, resulting in better capacity utilization and early signs of private capex. Global end markets for exports held up well for the year, while monetary policy actions by various central banks around the world to contain inflation may pose a challenge to consumption in the near term.”

He continued, “For the year ended March 31, 2023, CIL reported record revenue for the second financial year in a row, driven by strong domestic and export demand. This, coupled with pricing actions and prudent cost management, resulted in a record profit for the year. However, given the emission changes from July and continued supply chain challenges, especially for specific electronic and other components, we remain cautiously optimistic about the short- to medium-term demand outlook. The CPCB IV+ norms will become effective July 1, 2023, for gensets up to 800 kW. The company is ready with its products to meet the new emission norms and is confident of offering the best-in-class products to its customers, which will continue to deliver superior performance and meet the new emission norms.”

For more information: www.cummins.com