The Board of Directors of Cummins India Limited, at their meeting held today, took on record the unaudited financial results for the quarter and nine months ended December 31, 2019.
Net sales of the Company for the quarter ended December 31, 2019 at Rs. 1,428 Cr, declined 2% as compared to Rs. 1,463 Cr recorded in the same quarter last year and grew by 11% compared to Rs. 1,285 Cr recorded in the preceding quarter. Net sales for the nine months ended December 31, 2019 at Rs. 4,029 Cr declined 4% over the sales of Rs. 4,211 Cr recorded during same period last year.
Domestic sales in the current quarter at Rs. 1,058 Cr increased 4% as compared to Rs. 1,022 Cr recorded during the same quarter last year and increased 12% as compared to Rs. 947 Cr recorded during preceding quarter. Domestic sales for the nine months ended December 31, 2019 at Rs. 2,995 Cr grew by 4% over the sale of Rs. 2,881 recorded during same period last year.
Exports for the current quarter at Rs. 370 Cr declined 16% as compared to Rs. 441 Cr recorded in the same quarter last year, however improved 10% over Rs. 337 Cr recorded in the preceding quarter. Exports sales for the nine months ended December 31, 2019 at Rs. 1,034 Cr declined 22% over the export sales of Rs. 1,330 Cr recorded during the same period last year.
Profit before tax (excluding exceptional items) during the current quarter at Rs. 254 Cr is 6% lower as compared to Rs. 270 Cr recorded during the same quarter last year and 21% higher as compared to Rs. 210 Cr recorded during the preceding quarter.
Ashwath Ram, Managing Director, Cummins India Limited, said: In the domestic business, our distribution business had their best quarter in history, registering strong growth at 18% due to execution on certain contracts, while the Industrial business grew 8% led by the compressor and rail segments. Sales in the Powergen and Construction segments, continue to be impacted because of the slowdown in the Indian economy. This is primarily caused by constrained bank funding and delays in awarding of infrastructure projects. This scenario is likely continue for at least few more quarters and gradual revival may happen, as government measures to address these start to kick in and positively boost the economy.
Our confidence on the medium to long term outlook on domestic sales, especially from the infrastructure sector, is even higher as the allocations from the fiscal union budget work their way through this sector.
Export markets have continued to display softness in recent quarters, arising from global economic challenges. During this quarter we also experienced decline in certain markets within the global power generation business, where conditions deteriorated even further.
We executed on our cost optimization measures including zero based budgeting, to reduce our overall spend including on employment costs and have created an environment where people are conscious about every element of cost. These measures are being taken to help weather this slow demand cycle.
We continue to be positioned to outperform in our industry and are investing judiciously in product enhancements, increasing our customer focus, while maintaining strong controls on our cost of operations. Improving productivity and quality, are strong focus areas as we continue delivering value to all our stakeholders."
Shares of CUMMINS INDIA LTD. was last trading in BSE at Rs.588.7 as compared to the previous close of Rs. 605.25. The total number of shares traded during the day was 39801 in over 1827 trades.
The stock hit an intraday high of Rs. 614 and intraday low of 583.45. The net turnover during the day was Rs. 23898031.