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CUMMINS INDIA Announces Quarterly Results (4QFY20); Net Profit Down 16.0%
Fri, 19 Jun

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

CUMMINS INDIA Quarterly Financials

No. of Mths
Qtr. Ending
3
Mar-19*
3
Dec-19*
3
Mar-20*
QoQ ChangeYoY Change
Net SalesRs m13,40414,53410,528-27.6%-21.5%
Other incomeRs m69272389824.2%29.7%
TurnoverRs m14,09615,25711,426-25.1%-18.9%
ExpensesRs m11,68612,3779,862-20.3%-15.6%
Gross profitRs m1,7181,997629-68.5%-63.4%
DepreciationRs m2802963084.1%9.9%
InterestRs m4547495.2%8.2%
Profit before taxRs m2,0852,3781,170-50.8%-43.9%
TaxRs m676515-13-102.5%-101.9%
Profit after taxRs m1,4091,8621,183-36.5%-16.0%
Gross profit margin%12.813.76.0
Effective tax rate%32.421.7-1.1
Net profit margin%10.012.210.4
* 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 21.5% on a year-on-year (YoY) basis. The expenses were down by 15.6% YoY during the same period.
  • The company's operating profit declined by 63.4% YoY during the quarter. Consequently, operating profit margins witnessed a decline and stood at 6.0% in 4QFY20 as against 12.8% in 4QFY19.
  • Depreciation charges increased by 9.9% and finance costs increased by 8.2% YoY, respectively.
  • Other income increased by 29.7% YoY during the quarter.
  • Net profit for the quarter declined by 16.0% YoY. Net profit margins during the quarter increased from 10.0% in 4QFY19 to 10.4% in 4QFY20.
Quarter-on-Quarter Performance:
  • The company's operating income during the quarter fell 27.6% on a quarter-on-quarter (QoQ) basis. The expenses were down by 20.3% QoQ during the same period.
  • The company's operating profit declined by 68.5% QoQ during the quarter. Consequently, operating profit margins witnessed a decline and stood at 6.0% in 4QFY20 as against 13.7% in 3QFY19.
  • Net profit for the quarter declined by 36.5% QoQ, while net profit margins declined from 12.2% in 3QFY19 to 10.4% in 4QFY20.

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 737.0 to Rs 374.0, registering a Loss of Rs 363.0 or around 49.3%.

Meanwhile, the S&P BSE CAPITAL GOODS Index is trading at Rs 12,505.7 (up 0.8%). Over the last one year it has moved down from 19,268.8 to 12,505.7, a loss of 6,763 points (down 35.1%).

Overall, the S&P BSE SENSEX is down 12.2% over the year.

Current Valuations

At the current price of Rs 374.0, the price to earnings (P/E) ratio of CUMMINS INDIA stands at 16.5 times its trailing twelve months earnings, while its price to book value (P/BV) ratio stands at 2.4 times.