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

Mon, 1 Feb

CUMMINS INDIA has announced its results for the quarter ended December 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 2.0% on a year-on-year (YoY) basis. The expenses were down by 4.5% YoY during the same period.
• The company's operating profit increased by 21.0% YoY during the quarter. Consequently, operating profit margins witnessed a growth and stood at 17.0% in 3QFY21 as against 13.7% in 3QFY20.
• Depreciation charges increased by 8.2% and finance costs declined by 1.5% YoY, respectively.
• Other income increased by 36.2% YoY during the quarter.
• Net profit for the quarter increased by 25.7% YoY. Net profit margins during the quarter increased from 12.2% in 3QFY20 to 15.4% in 3QFY21.

Quarter-on-Quarter Performance:

• The company's operating income during the quarter grew 22.8% on a quarter-on-quarter (QoQ) basis. The expenses were up by 19.1% QoQ during the same period.
• The company's operating profit increased by 44.4% QoQ during the quarter. Consequently, operating profit margins witnessed a growth and stood at 17.0% in 3QFY21 as against 14.4% in 2QFY20.
• Net profit for the quarter increased by 60.8% QoQ, while net profit margins increased from 12.0% in 2QFY20 to 15.4% in 3QFY21.

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 up from Rs 562.8 to Rs 725.5, registering a Gain of Rs 162.7 or around 28.9%.

Meanwhile, the S&P BSE CAPITAL GOODS Index is trading at Rs 20,561.6 (up 5.5%). Over the last one year it has moved up from 16,625.9 to 20,561.6, a gain of 3,936 points (up 23.7%).

Overall, the S&P BSE SENSEX is up 18.6% over the year.

Current Valuations

At the current price of Rs 725.5, the price to earnings (P/E) ratio of CUMMINS INDIA stands at 36.5 times its trailing twelve months earnings, while its price to book value (P/BV) ratio stands at 4.6 times.