Pune, India: The Board of Directors of Cummins India Limited, at their meeting held today, took on record the unaudited financial results for the quarterended June 30, 2020.
Q1FY’21 Performance Highlights: -
Revenue for the quarter at ₹ 484 Cr, declined by 63% as compared to ₹ 1,316 Cr recorded in the same quarter last year and by 53% compared to ₹ 1,032 Cr recorded in the preceding quarter.
Domestic sales in the current quarter at ₹ 358 Cr declined by 64% as compared to
₹ 990 Cr recorded during the same quarter last year and declined by 54% as compared to ₹ 775 Cr recorded during preceding quarter.
Exports for the current quarter at ₹ 126 Cr declined 61% as compared to ₹ 326 Cr recorded in the same quarter last year and lower by 51% as compared to ₹ 257 Cr recorded in the preceding quarter
Profit before tax (excluding exceptional items) at ₹ 70 Cr is 64% lower as compared to ₹ 194 Cr recorded during the same quarter last year and 42% lower as compared to ₹121 Cr recorded during the preceding quarter.
Ashwath Ram, Managing Director, Cummins India Limited, said:
Nationwide lockdown for most of the quarter and other containment/ precautionary measures have resulted into drop in demand in India and around the world as well as unprecedented disruptions to the supply chain and dispatches to customers.
The Company resumed partial operations from second week of May’20 in a gradual manner in compliance with the guidelines issued by State and local government authorities. Anticipating potential disruptions, the company took some proactive actions to minimize supply chain disruptions and stabilize operations by end of June. As the Company operations were significantly impacted in April and May, operations for the quarter to that extent may be viewed accordingly.
The Company continues to take actions to prudently manage cost as well as to conserve cash. The Company has a strong balance sheet and believes it can manage the ongoing business slow down effectively. The Company continues to monitor the situation closely and is taking all actions to ensure the safety and security of its employees and facilities. The company continues to serve customers and other stakeholders in these difficult business conditions.
Future Outlook: -
The Company expects gradual recovery of demand in coming months. However, there remains significant uncertainty around how COVID-19 will impact market demand as well as customer and supplier operations. Due to this uncertainty the Company is not providing a full year revenue guidance for FY 2021.
About Cummins India Limited
Cummins India Limited, headquartered in Pune since 1962, is the country's leading manufacturer of diesel and natural gas engines for power generation, industrial and automotive markets.
About Cummins Group in India
Cummins in India, a power leader, is a group of complementary business units that design, manufacture, distribute and service engines and related technologies, including fuel systems, air handling, filtration, emission solutions and electrical power generation systems. Its technology and pioneering initiatives are bringing innovative solutions and dependable services at the best possible value to users across the country. Its high-performance outlook is based on customer focus, integrity and capability of its people. Part of the US $23.6 billion Cummins Inc., Cummins in India is a Group of seven legal entities across 200 locations in the country with a combined turnover of over ₹13,700 crores in 2019 and employing over 10,000 individuals.