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Cummins India’s PAT falls in Q1 FY23.

Everest Kanto reported a total revenue of Rs. 380 Cr.

Cummins India’s PAT falls in Q1 FY23.

Cummins India on Wednesday reported a 20% decline in PAT at Rs 198.13 crore  for June quarter. The company’s consolidated profit after tax (PAT) was Rs 246.94 crore in the year-ago period. The consolidated sales during this period increased 41.47% to Rs 1,666.11 crore from Rs 1,177.71 crore in the June quarter of 2021. Domestic sales were 1,172 Cr., a 36% increase over June 2021 and a 12% increase over March 2022.

The export sales were valued at  485 Cr., increased by 58% compared to June 2021 and by 14% compared to March 2022. The profit before tax at 264 Cr. is lower by 13% compared to June 2021 and higher by 8% compared to the March 2022 quarter.

Cummins India is planning to increase its sales volume.

They are closely monitoring the results of the geopolitical events unfolding in different parts of the world and their impact on global demand and the supply chain. Cummins India effectively deals with challenges and monitors any potential impact of rising interest rates on demand. However, they remain optimistic about the short-to-medium-term demand outlook. The company believes that the strong demand from various end-markets may likely be sustained, but at the same time, high inflation and supply chain issues will, in all probability, continue to impact the industry.

The company believes that the strong demand from various end markets may likely continue. At the same time, surging inflation and supply chain disruptions will, in all probability, continue to impact the industry. The company, being part of the global supply chain, is well placed to manage parts supplies to mitigate the impact on revenue and profitability. They are closely monitoring the results of the geopolitical events unfolding in different parts of the world and their impact on global demand and the supply chain. Considering the uncertainty, the company will not provide any guidance for FY 23.

Valuations:

The P/E for the company is at 40.0 times and the 5Y P/E ratio is 28.6 times. The ROCE is 21.3%.While the company’s ROE is 16.9%.The EVEBITDA ratio is 26.0.EPS for the company is Rs. 30.6 per share. The debt-to-equity ratio is currently 0.08.The scrip closed at Rs.1239 and was up by 6.15% on Thursday.

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