Cummins India, the leading diesel and natural gas engine manufacturer, witnessed a significant boost in its shares, rising by nearly 4 percent on November 8. This surge followed the company’s impressive performance in the second quarter, marked by a notable 23 percent spike in net profits. At 10:51 am, Cummins India’s stock was trading at Rs 1757.33 on the National Stock Exchange (NSE).
The company’s robust financial results were underpinned by robust demand both in domestic and international markets. In the quarter ending on September 30, 2023, Cummins India reported a consolidated profit after tax (PAT) of Rs 329.09 crore, marking a substantial increase from Rs 267.31 crore in the year-ago period. Despite a 1.8 percent dip in income from operations, reaching Rs 1,893 crore, the company’s profitability remained strong.
This quarter marked the third consecutive period where Cummins India capitalized on the upswing in demand, driven by growth in private and public capital expenditure. Additionally, the company benefited from a reduction in execution issues, enabling it to post robust revenues.
In the face of challenges, Cummins India’s management displayed confidence, citing the company’s strong balance sheet and prudent investments in technology as key factors enabling them to navigate potential hurdles successfully. By 1:00 pm, Cummins India’s shares continued to surge, trading 2.85 percent higher at ₹1,747.55, reflecting investors’ positive response to the company’s stellar performance.