Cummins India slips after weak Q2 results:27-Oct-2016

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Cummins India plunged over 3 percent to Rs 850 on BSE after net profit declined 0.53 percent to Rs 196.90 crore on 5.64 percent growth in total income to Rs 1429.13 crore in Q2 September 2016 over Q2 September 2015.

The result was announced after market hours yesterday, 26 October 2016.

Meanwhile, the BSE Sensex was down 121.81 points, or 0.44 percent, to 27,714.70.

On BSE, so far 12,000 shares were traded in the counter, compared with average daily volume of 39,229 shares in the past one quarter. The stock hit a high of Rs 883.80 and a low of Rs 837 so far during the day. The stock hit a 52-week high of Rs 1,099.50 on 4 November 2015.

The stock hit a 52-week low of Rs 746.80 on 26 May 2016. The stock had underperformed the market over the past 30 days till 26 October 2016, falling 2.82 percent compared with 1.37 percent decline in the Sensex. The scrip had, however, outperformed the market in past one quarter, falling 0.76 percent as against Sensex’s 1.32 percent decline.

The large-cap company has equity capital of Rs 55.44 crore. Face value per share is Rs 2.

Cummins India’s gross sales rose 5 percent to Rs 1331 crore in Q2 September 2016 over Q2 September 2015. Domestic sales grew by 8 percent to Rs 885 crore in Q2 September 2016 over Q2 September 2015. Exports grew by 1 percent to Rs 446 crore in Q2 September 2016 over Q2 September 2015.

Anant J. Talaulicar, Chairman & Managing Director (CMD) of Cummins India said that the company’s exports continue to face headwinds due to the macroeconomic situation. The company continues to make inroads and gain market share domestically, Anant said. Government led investments in roadways and railways continued to drive Cummins’ sales growth in the industrial engine segment, the CMD added.

Despite exports revenues remaining depressed, the company’s strong focus on cost optimization and efficiency improvement has helped it sustain its profitability, Anant said. Cummins remains committed to investing in customer-centric, fit-for-market products and technologies as well as in leadership and diverse talent development to continue delivering profitable growth in the future, Anant said.

Cummins India is a leading manufacturer of diesel and natural gas engines for power generation, industrial and automotive markets.

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