Key economic indicators like GDP growth rate of 7.6% and consistent PMI indicate optimism about continued growth.
30 May 2024 | 6771 Views | By Shahkar Abidi
Cummins India Limited (CIL) saw a strong year in FY24, with total sales rising 16% to Rs 8,816 crore compared to the previous year. The growth was driven by a 28% surge in domestic sales to Rs 7,143 crore, partially offset by an 18% decline in exports to Rs 1,673 ...
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Cummins India Limited (CIL) saw a strong year in FY24, with total sales rising 16% to Rs 8,816 crore compared to the previous year. The growth was driven by a 28% surge in domestic sales to Rs 7,143 crore, partially offset by an 18% decline in exports to Rs 1,673 crore.
Profitability also improved significantly. Profit before tax jumped 44% year-on-year to Rs 2,143 crore, while profit after tax climbed 47% to Rs 1,661 crore.
Ashwath Ram, Managing Director, Cummins India Limited, in a statement noted that the Indian economy continues to remain resilient despite geopolitical events and other economic events impacting the growth of various countries. Key economic indicators like GDP growth rate of 7.6% and consistent PMI indicate optimism about continued growth. Robust tax collections are indicating underlying growth in economic activities.
The Indian Government’s continued focus on infrastructure and higher allocation in the interim budget is driving growth in end markets of interest for the company. At the same time, internationally, geopolitical risks and conflicts continue to pose uncertainty about global trade and supply chain disruptions.
"The company recorded another year of record revenue and profit, driven by strong demand from the domestic market while export market demand was soft". "The Company launched the CPCB IV+ range of products, which were very well received by customers". "The company continues to have a strong balance sheet and liquidity and is well-positioned to support its operations and growth plans" remarked Ram.
Future Outlook
Commenting on the domestic market, management highlighted the upcoming shift in power generation regulations. With the deadline for selling CPCB II compliant generator sets ending in June, the focus will shift to CPCB IV+ compliant products effective July 1. "Cummins India is well-positioned for this transition," they said, "offering a strong portfolio of CPCB IV+ products across our entire range."
The outlook for exports, however, is more cautious. The management acknowledged the potential impact of global economic uncertainties stemming from geopolitical events. They emphasised close monitoring of these developments and their effect on global supply chains and demand. Despite the near-term challenges, Cummins India remains confident in its diversified product portfolio and is actively pursuing an export recovery.