Cummins India has has logged in a 29% YoY decline in net profit during 1QFY03. Lower net sales (down over 20%) were largely a result of lower exports during the quarter. This largely contributed to the decline in bottomline.
Operating Profit (EBDIT)
Operating Profit Margin (%)
Profit before Tax
Profit after Tax/(Loss)
Net profit margin (%)
No. of Shares
Diluted Earnings per share*
Weak demand and high inventories in global markets affected exports and profits of the company during the qaurter. The company expects a continued lower trend in its exports atleast for next two quarters. Fgorex earnings during the quarter stood at Rs 309 m (i.e. 21% of 1QFY03 net sales).
The amalgamation of Cummins Power Solutions Limited and Power Systems India Limited with Cummins India Limited is pending due to legal formalities. As such, the financial results represent only figures of Cummins India, though the proposed amalgamation is with effect from April 1, 2002. The combined net sales of Cummins Power and Power Systems for the quarter are Rs 371 m, a growth of 25% YoY.
The stock is trading at 4.3x annualised 1QFY03 earnings.
LEGAL DISCLAIMER: Equitymaster Agora Research Private Limited (hereinafter referred as 'Equitymaster') is an independent equity research Company. Equitymaster is not an Investment Adviser. Information herein should be regarded as a resource only and should be used at one's own risk. This is not an offer to sell or solicitation to buy any securities and Equitymaster will not be liable for any losses incurred or investment(s) made or decisions taken/or not taken based on the information provided herein. Information contained herein does not constitute investment advice or a personal recommendation or take into account the particular investment objectives, financial situations, or needs of individual subscribers. Before acting on any recommendation, subscribers should consider whether it is suitable for their particular circumstances and, if necessary, seek an independent professional advice. This is not directed for access or use by anyone in a country, especially, USA or Canada, where such use or access is unlawful or which may subject Equitymaster or its affiliates to any registration or licensing requirement. All content and information is provided on an 'As Is' basis by Equitymaster. Information herein is believed to be reliable but Equitymaster does not warrant its completeness or accuracy and expressly disclaims all warranties and conditions of any kind, whether express or implied. Equitymaster may hold shares in the company/ies discussed herein. As a condition to accessing Equitymaster content and website, you agree to our Terms and Conditions of Use, available here. The performance data quoted represents past performance and does not guarantee future results.
SEBI (Research Analysts) Regulations 2014, Registration No. INH000000537.
Equitymaster Agora Research Private Limited. 103, Regent Chambers, Above Status Restaurant, Nariman Point, Mumbai - 400 021. India. Telephone: +91-22-61434055. Fax: +91-22-22028550. Email: email@example.com. Website: www.equitymaster.com. CIN:U74999MH2007PTC175407