Cummins India zooms 10% on highest-ever quarterly net profit, revenue

Shares of Cummins India rallied over 10 percent intraday on February 8 to hit a new all-time high of Rs 2,648.80 on the National Stock Exchange (NSE), a day after the company reported impressive earnings for the quarter ended December 2023.

The company's Q3 results showed a marked improvement in the company's performance compared to the same period last year.

The company reported its highest-ever quarterly consolidated net profit at Rs 455 crore in the October-December quarter, up 26 percent from Rs 360 crore reported in the year-ago quarter. It also recorded its highest-ever revenue of Rs 2,534 crore, a YoY growth of 16.18 percent compared to Rs 2,181 crore in Q3 FY23.

At 2:03pm, Cummins India shares were trading 8 percent higher at Rs 2,593 apiece. The stock has surged 76 percent in the last one year, marginally outperforming benchmark Nifty 50 which has risen 22 percent during this period.

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"The company recorded the highest quarterly revenue and profits based on robust domestic demand and is well-positioned to support domestic and export demand. The company has a strong liquidity and financial position to support its operations and growth plans," said Ashwath Ram, Managing Director, Cummins India.

Following the company's Q3 FY24 performance, domestic brokerage firm Kotak Institutional Equities upgraded its rating on the stock to ‘buy’ with a target price of Rs 2,750 apiece. Out of 27 analysts tracking the company, 11 maintained a 'buy' rating, six recommended a 'hold', and ten have a 'sell', according to Bloomberg data.

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