Net sales of the company during quarter under review increased 18.9% to Rs 1,235 crore against Rs 1,039 crore in the corresponding quarter of previous fiscal.
Analysts on an average had expected profit of Rs 208 crore on revenues of Rs 1,299 crore for the quarter.
“Exports markets continue to disappoint based on the global economic scenario. In particular, the demand for low kilowatt generators has continued to soften based on difficulties that some of the economies are experiencing in the Middle East, Africa, Europe and Asia. Our product mix was unfavorable in the quarter which has had an adverse impact on profitability,” Anant J. Talaulicar, chairman & managing director, Cummins India said.
“Our domestic growth story continues based on momentum from the Government’s increased investments in infrastructure for the economy. The company remains optimistic about its growth prospects in the domestic market,” added Talaulicar.
At 12:00 pm; the stock was down 8% to Rs 973 on BSE, as compared to 0.13% rise in the S&P BSE Sensex. A combined 1.49 million shares changed hands on the counter on BSE and NSE so far.