CUMMINS INDIA Announces Quarterly Results (2QFY21); Net Profit Down 20.6%

Fri, 30 Oct

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

CUMMINS INDIA Quarterly Financials

Year-on-Year Performance:

• The company's operating income during the quarter fell 11.3% on a year-on-year (YoY) basis. The expenses were down by 14.1% YoY during the same period.
• The company's operating profit increased by 9.8% YoY during the quarter. Consequently, operating profit margins witnessed a growth and stood at 14.4% in 2QFY21 as against 11.7% in 2QFY20.
• Depreciation charges increased by 11.5% and finance costs declined by 27.2% YoY, respectively.
• Other income declined by 37.4% YoY during the quarter.
• Net profit for the quarter declined by 20.6% YoY. Net profit margins during the quarter declined from 13.1% in 2QFY20 to 11.9% in 2QFY21.

Quarter-on-Quarter Performance:

• The company's operating income during the quarter grew 132.9% on a quarter-on-quarter (QoQ) basis. The expenses were up by 100.4% QoQ during the same period.
• The company's operating profit increased by 5672.4% QoQ during the quarter. Consequently, operating profit margins witnessed a growth and stood at 14.4% in 2QFY21 as against 0.6% in 1QFY20.
• Net profit for the quarter increased by 176.9% QoQ, while net profit margins increased from 8.8% in 1QFY20 to 11.9% in 2QFY21.

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

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CUMMINS INDIA Share Price Performance

Over the last one year, CUMMINS INDIA share price has moved down from Rs 553.0 to Rs 438.3, registering a Loss of Rs 114.7 or around 20.7%.

Meanwhile, the S&P BSE CAPITAL GOODS Index is trading at Rs 14,147.6 (up 0.1%). Over the last one year it has moved down from 18,848.6 to 14,147.6, a gain of 4,701 points (down 24.9%).

Overall, the S&P BSE SENSEX is down 0.8% over the year.

Current Valuations

At the current price of Rs 438.3, the price to earnings (P/E) ratio of CUMMINS INDIA stands at 24.2 times its trailing twelve months earnings, while its price to book value (P/BV) ratio stands at 2.8 times.