CUMMINS INDIA Announces Quarterly Results (1QFY21); Net Profit Down 62.9%

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 INDIA Announces Quarterly Results (1QFY21); Net Profit Down 62.9%
Mon, 14 Sep

CUMMINS INDIA has announced its results for the quarter ended June 2020. Here is a detailed performance review of the same:

CUMMINS INDIA Quarterly Financials

No. of Mths
Qtr. Ending
3
Jun-19*
3
Mar-20*
3
Jun-20*
QoQ ChangeYoY Change
Net SalesRs m13,43010,5284,982-52.7%-62.9%
Other incomeRs m7698981,02213.8%32.9%
TurnoverRs m14,19911,4266,004-47.5%-57.7%
ExpensesRs m11,9169,8624,953-49.8%-58.4%
Gross profitRs m1,51462929-95.4%-98.1%
DepreciationRs m291308303-1.4%4.3%
InterestRs m524943-11.9%-17.0%
Profit before taxRs m1,9401,170705-39.8%-63.7%
TaxRs m525-13179-65.9%
Profit after taxRs m1,4151,183526-55.6%-62.9%
Gross profit margin%11.36.00.6
Effective tax rate%27.1-1.125.4
Net profit margin%10.010.48.8
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster


Year-on-Year Performance:
  • The company's operating income during the quarter fell 62.9% on a year-on-year (YoY) basis. The expenses were down by 58.4% YoY during the same period.
  • The company's operating profit declined by 98.1% YoY during the quarter. Consequently, operating profit margins witnessed a decline and stood at 0.6% in 1QFY21 as against 11.3% in 1QFY20.
  • Depreciation charges increased by 4.3% and finance costs declined by 17.0% YoY, respectively.
  • Other income increased by 32.9% YoY during the quarter.
  • Net profit for the quarter declined by 62.9% YoY. Net profit margins during the quarter declined from 10.0% in 1QFY20 to 8.8% in 1QFY21.
Quarter-on-Quarter Performance:
  • The company's operating income during the quarter fell 52.7% on a quarter-on-quarter (QoQ) basis. The expenses were down by 49.8% QoQ during the same period.
  • The company's operating profit declined by 95.4% QoQ during the quarter. Consequently, operating profit margins witnessed a decline and stood at 0.6% in 1QFY21 as against 6.0% in 4QFY20.
  • Net profit for the quarter declined by 55.6% QoQ, while net profit margins declined from 10.4% in 4QFY20 to 8.8% in 1QFY21.

To see how CUMMINS INDIA has performed over the last eight quarters,please visit here.

Know More: Is India's Economic Recovery Sustainable?

CUMMINS INDIA Share Price Performance

Over the last one year,CUMMINS INDIA share price has moved down from Rs 581.4 to Rs 466.1, registering a Loss of Rs 115.4 or around 19.8%.

Meanwhile, the S&P BSE CAPITAL GOODS Index is trading at Rs 13,981.7 (up 1.2%). Over the last one year it has moved down from 17,422.5 to 13,981.7, a gain of 3,441 points (down 19.7%).

Overall, the S&P BSE SENSEX is up 5.0% over the year.

Current Valuations

At the current price of Rs 466.1, the price to earnings (P/E) ratio of CUMMINS INDIA stands at 23.9 times its trailing twelve months earnings, while its price to book value (P/BV) ratio stands at 3.0 times.

Equitymaster requests your view! Post a comment on "CUMMINS INDIA Announces Quarterly Results (1QFY21); Net Profit Down 62.9%". Click here!

  

Related Views on News

CUMMINS INDIA Announces Quarterly Results (4QFY20); Net Profit Down 16.0% (Quarterly Result Update)

Jun 19, 2020 | Updated on Jun 19, 2020

For the quarter ended March 2020, CUMMINS INDIA has posted a net profit of Rs 1 bn (down 16.0% YoY). Sales on the other hand came in at Rs 11 bn (down 21.5% YoY). Read on for a complete analysis of CUMMINS INDIA's quarterly results.

CUMMINS INDIA Announces Quarterly Results (3QFY20); Net Profit Down 0.5% (Quarterly Result Update)

Jan 30, 2020 | Updated on Jan 30, 2020

For the quarter ended December 2019, CUMMINS INDIA has posted a net profit of Rs 2 bn (down 0.5% YoY). Sales on the other hand came in at Rs 15 bn (down 3.3% YoY). Read on for a complete analysis of CUMMINS INDIA's quarterly results.

Mazagon Dock Shipbuilders IPO: Should You Apply? (IPO)

Sep 29, 2020

Should you bet on this public sector defence shipbuilder?

CUMMINS INDIA 2017-18 Annual Report Analysis (Annual Result Update)

Jul 18, 2019 | Updated on Jul 18, 2019

Here's an analysis of the annual report of CUMMINS INDIA for 2017-18. It includes a full income statement, balance sheet and cash flow analysis of CUMMINS INDIA. Also includes updates on the valuation of CUMMINS INDIA.

More Views on News

Most Popular

My View on ITC(Fast Profits Daily)

Oct 23, 2020

What do the charts say about ITC?

Why ITC and not HUL is my Idea of a Good Investment Right Now(Views On News)

Oct 15, 2020

Rahul Shah discusses HUL's lost decade and its implications for ITC.

Why India's Drone Revolution is a 4x Profit Opportunity(Profit Hunter)

Oct 16, 2020

My research on India's leading defence companies brought me to one major player in drone manufacturing.

The Biggest Wealth Creating Opportunity that No One is Talking About(Profit Hunter)

Oct 14, 2020

The defence sector has gone under the radar despite positive developments. Here's why this sector can't be ignored for long...

More

Covid-19 Proof
Multibagger Stocks

Covid19 Proof Multibaggers
Get this special report, authored by Equitymaster's top analysts now!
We will never sell or rent your email id.
Please read our Terms

CUMMINS INDIA SHARE PRICE


Oct 26, 2020 (Close)

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 - ABB COMPARISON

COMPARE CUMMINS INDIA WITH

MARKET STATS