Cummins India Q1 results: PAT up 31% at Rs 463 cr on high generator demand
Analysts expect the company to benefit from a transition to CPCB IV+ emission norms, effective from July 1 | Image: Wikimedia Commons
Cummins India, a unit of US- based truck engine maker Cummins, reported a 31 per cent surge in first-quarter profit, driven by increasing domestic demand for its power generators.
The company’s consolidated profit after tax rose to Rs 463 cr (about $55 million) in the three months ended June 30 from Rs 354 cr a year earlier.
Higher sales in its engines segment, which includes power generator sets, boosted overall sales by 5 per cent to Rs 2,916 cr.
The engine segment contributes to nearly 80 per cent to overall sales.
India’s electricity generation hit record highs in the April-June quarter – peak summer time for the country – fuelling demand for power generators.
Separately, analysts expect the company to benefit from a transition to CPCB IV+ emission norms, effective from July 1.
The norms, which are part of the government’s efforts to reduce pollution, will apply to diesel generators with a power output of up to 800 kilowatts, which comprise about 70 per cent of Cummins’ products.
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First Published: Aug 06 2024 | 8:22 PM IST