Cummins India registers highest ever quarterly sales growth of 11%
The company could register the robust sales growth because it was able to achieve domestic sales growth of 14 per cent and export growth of around 5 per cent.
Fuelled by the 14 per cent domestic sales growth and 5 per cent export growth, Cummins India has registered 11 per cent sale growth from April to December 2018 period, as compared to ₹1,318 Cr recorded in the same quarter last year, represent the highest sales ever achieved in a quarter. Interestingly, post implementation of GST from July 01, 2017, sales numbers are required to be disclosed without including the levy of GST. The Cummins India informed in a written statement that the Company has excluded excise duty from the reported sales numbers for nine months ended 31st December 2017.
Speaking on the quarterly results Sandeep Sinha, Managing Director, Cummins India Limited, said, “Domestic sales in the current quarter at ₹ 1,022 Cr were the highest ever recorded. This is primarily on account of strong demand in our Industrial & Powergen markets. While we are confident on the medium to long term outlook for domestic sales, in short term we could be dealing with some volatility arising from the upcoming general elections. Exports revenue grew by 5% over the comparable quarter in the previous year but declined by 2% over the preceding quarter due to lower demand in global Powergen market. A clear trend is yet to emerge on account of prevailing uncertainties in various economies across the world."
See Zee Business video below:
— Zee Business (@ZeeBusiness) February 7, 2019
Sinha said that the company continue to be positioned to outperform in our industry and are investing judiciously in product enhancements, increasing our customer focus, while maintaining strong controls over our cost of operations, improving productivity, quality and positioning ourselves strongly to continue delivering value to all its stakeholders.
Net sales of the Company for the quarter ended December 31, 2018 at ₹1,463 Cr, which grew by 11% as compared to ₹1,318 Cr recorded in the same quarter last year, represent the highest sales ever achieved in a quarter and grew by 1% compared to ₹1,452 Cr recorded in the preceding quarter. Net sales for the nine months ended December 31, 2018 at ₹4,211 Cr grew by 12% over same period last year. This is again a record high.
Domestic sales in the current quarter represent the highest achieved at ₹1,022 Cr, which grew by 14% over the same quarter last year and grew by 2% over the preceding quarter. Domestic sales for the nine months ended December 31, 2018 at ₹2,881 Cr grew by 12% over the same period last year, is a record high.
Exports for the current quarter at ₹441 Cr grew 5% over the same quarter last year and declined by 2% over the preceding quarter. Exports for the nine months ended December 31, 2018 at ₹1,330 Cr grew by 12% over the same period last year.
Net profit before tax in the quarter ended December 31, 2018 is at ₹270 Cr which is 23% higher as compared to ₹220 Cr recorded in the same quarter last year and is 9% lower as compared to ₹ 298 Cr recorded in the preceding quarter. Net profit before tax for the nine months ended December 31, 2018 grew 28% to ₹822 Cr as compared to ₹ 644 Cr in the same period last year (excluding the gain on sale of real estate of ₹ 56 Cr in last year).
The board has declared an interim dividend of ₹7 per share (350 percent of share capital) in the meeting held on February 6.
Get Latest Business News, Stock Market Updates and Videos; Check your tax outgo through Income Tax Calculator and save money through our Personal Finance coverage. Check Business Breaking News Live on Zee Business Twitter and Facebook. Subscribe on YouTube.