Stellar Q2FY24 performance: 30 per cent surge in net profit; Do you own it?
The stock has witnessed significant buying activity as it has given multibagger returns of more than 287 per cent in just 3 years.
Today, the shares of Cummins India Limited soared over 3.90 per cent. Furthermore, the scrip witnessed a spurt in volume by more than 5.79 times. The company's current market capitalization stands at Rs 48,968.77 crore.
Cummins India Limited is a vital component of the Cummins Inc. Group USA, specializing in the design, manufacturing, distribution, and servicing of diesel and alternative fuel engines ranging from 2.8 to 95 liters. Additionally, the company offers diesel and alternative-fueled power generator sets with capacities of up to 3000 kW (3750 kVA). Cummins India Ltd is also actively involved in providing a wide array of related components and cutting-edge technology solutions.
Performance Highlights (based on standalone unaudited financial results) for the quarter ended September 30, 2023:
In the third quarter of 2023, the company reported total sales of Rs 1,871 crore This figure represents a 3 per cent decrease compared to the same quarter in the previous year and a 14 per cent decrease compared to the previous quarter.
Domestic sales amounted to Rs 1,364 crore, indicating a 2 per cent decrease compared to the same quarter last year and a 19 per cent decrease compared to the previous quarter. In the case of export sales, the company recorded Rs 507 crore, reflecting a 4 per cent decrease compared to the same quarter last year but a 2 per cent increase compared to the previous quarter.
The profit before tax reached Rs 426 crore, marking a 27 per cent increase compared to the same quarter last year and a 3 per cent increase compared to the previous quarter. Profit after tax stood at Rs 329 crore, with a 30 per cent increase compared to the same quarter last year and a 4 per cent increase compared to the previous quarter.
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Future Outlook:
The Company has successfully launched CPCB IV+ emission norms-compliant products in the market, adhering to the specified timelines. The preceding two quarters observed shifts in demand due to the allowance of selling both CPCB II and CPCB IV+ products until June 2024. It is anticipated that the demand will return to a state of equilibrium and persist for the remainder of the year. While developed markets are currently experiencing a slowdown in demand, the Company is vigilantly monitoring the conditions of its end markets.
Despite the unpredictability stemming from geopolitical events, ongoing conflicts, and their potential ramifications on supply chain dynamics, the Company maintains confidence in its preparedness to address challenges. It continues to exhibit a prudent approach to capital allocation and cost management, boasting a robust balance sheet and a substantial cash position. The outlook remains optimistic concerning the company's potential for sustained and profitable growth.
Furthermore, the stock has witnessed significant buying activity as it has given multibagger returns of more than 287 per cent in just 3 years.
Disclaimer: The article is for informational purposes only and not investment advice.