Cummins reports 22% jump in net - Views on News from Equitymaster

Helping You Build Wealth With Honest Research
Since 1996. Try Now

  • MyStocks

MEMBER'S LOGINX

     
Login Failure
   
     
   
     
 
 
 
(Please do not use this option on a public machine)
 
     
 
 
 
  Sign Up | Forgot Password?  

Cummins reports 22% jump in net

Feb 1, 2001

The diesel engines major, Cummins India, has reported a 22% jump, both in its 3QFY01 bottomline as well as its nine month consolidated FY01 bottomline. The company's turnover recorded a growth of 7% in 3QFY01.

(Rs m) 3QFY00 3QFY01 Change 9m FY00 9m FY01 Change
Sales Turnover 2,117 2,272 7.3% 5,882 6,269 6.6%
Other Income 53 62 17.0% 137 150 9.1%
Total expenditure 1,802 1,906 5.8% 4,962 5,189 4.6%
Operating Profit (EBDIT) 315 366 16.2% 920 1,080 17.4%
Operating Profit Margin (%) 14.9% 16.1%   15.6% 17.2%  
Interest 11 4 -63.6% 24 14 -42.8%
Depreciation 60 65 9.5% 177 189 7.0%
Profit before Tax 297 359 20.8% 856 1,027 20.0%
Tax 85 101 18.5% 246 285 15.7%
Profit after Tax/(Loss) 211 257 21.7% 610 742 21.7%
Net profit margin (%) 10.0% 11.3%   10.4% 11.8%  
No. of Shares (eoy) (m) 39.6 198.0   39.6 198.0  
Diluted No. of shares outstd. (m) 198.0 198.0   198.0 198.0  
Earnings per share*       4.1 5.0  
*(annualised)            
Current P/e ratio         16.7  

The small improvement in topline does indicate a revival for the engineering sector. However, the company's profitability has improved on the back of lesser interest burden (43% decline during 9 months). As a result the company's net margins improved by 130 basis points in 3QFY01 and by 140 basis points in the nine months ended December 31, 2001.

During the quarter October to December 2000, the Company has invested Rs 35 million in the share capital of Cummins Power Solutions Limited (CPSL). CPSL is a wholly-owned subsidiary of Cummins India Limited. The move is to enhance its services focus, which the engineering industry as a whole has identified as an emerging market.

In 3QFY01, the company split its equity shares in the ratio 5:1. As a result, the company's equity share face value stands at Rs 2 currently.

The Cummins stock trades at a P/e multiple of 16.7 times its annualised nine month FY01 earnings. In light of the company's perfromance, we believe that the stock has been given a fair rating by the bourses.

Equitymaster requests your view! Post a comment on "Cummins reports 22% jump in net". Click here!

  

More Views on News

CUMMINS INDIA Announces Quarterly Results (1QFY22); Net Profit Up 418.4% (Quarterly Result Update)

Aug 16, 2021 | Updated on Aug 16, 2021

For the quarter ended June 2021, CUMMINS INDIA has posted a net profit of Rs 2 bn (up 418.4% YoY). Sales on the other hand came in at Rs 12 bn (up 137.6% YoY). Read on for a complete analysis of CUMMINS INDIA's quarterly results.

CUMMINS INDIA 2020-21 Annual Report Analysis (Annual Result Update)

Aug 12, 2021 | Updated on Aug 12, 2021

Here's an analysis of the annual report of CUMMINS INDIA for 2020-21. It includes a full income statement, balance sheet and cash flow analysis of CUMMINS INDIA. Also includes updates on the valuation of CUMMINS INDIA.

CUMMINS INDIA Announces Quarterly Results (3QFY21); Net Profit Up 25.7% (Quarterly Result Update)

Feb 1, 2021 | Updated on Feb 1, 2021

For the quarter ended December 2020, CUMMINS INDIA has posted a net profit of Rs 2 bn (up 25.7% YoY). Sales on the other hand came in at Rs 14 bn (down 2.0% YoY). Read on for a complete analysis of CUMMINS INDIA's quarterly results.

Infrastructure Boom Ahead. Here are 3 Ways to Play It... (Views On News)

Aug 24, 2021

India is expected to become the third largest construction market next year. For that, it needs huge investments.

G R Infraprojects Makes a Bumper Listing on Bourses. Big Gains for IPO Investors (Views On News)

Jul 19, 2021

GR Infra shares were subscribed over 100 times in its IPO.

More Views on News

Most Popular

Infosys vs TCS: Which is Better? (Views On News)

Nov 26, 2021

In the post pandemic era, the top two IT companies in India are fighting to capture the growing demand for IT.

This Multibagger Stock Zooms 20% After Dolly Khanna Buys Stake (Views On News)

Nov 24, 2021

Shares of this edible oil company zoomed over 50% in three days after ace investor bought around 1% stake.

6 Popular Stocks that Turned into Penny Stocks (Views On News)

Nov 27, 2021

A look at popular stocks that crashed big time and never recovered, i.e. which went from 'Multibaggers to Multibeggers'.

India's Top 5 Monopoly Stocks to Watch Out for (Views On News)

Nov 30, 2021

These 5 companies dominate their sectors with a huge piece of the pie.

5 Indian Companies Embracing Blockchain Technology (Views On News)

Nov 23, 2021

Blockchain adoption in India was slow in the past. Now, the technology is being well received.

More

Become A Smarter Investor
In Just 5 Minutes

Multibagger Stock Guide 2022
Get our special report Multibagger Stocks Guide (2022 Edition) Now!
We will never sell or rent your email id.
Please read our Terms

CUMMINS INDIA SHARE PRICE


Dec 6, 2021 01:42 PM

TRACK CUMMINS INDIA

  • Track your investment in CUMMINS INDIA with Equitymaster's Portfolio Tracker. Set live price alerts, get research alerts and more. Get access now...
  • Add To MyStocks

CUMMINS INDIA - SWARAJ ENGINES COMPARISON

COMPARE CUMMINS INDIA WITH

MARKET STATS