Latest news with #CumminsIndia
Time of India
2 days ago
- Business
- Time of India
In infrastructure, power, defence and railway PSUs expected to thrive: Ajay Bagga
Ajay Bagga , Market Expert, says the government and household spending are driving infrastructure growth , while private capital expenditure remains sluggish due to low capacity utilization and policy uncertainty. Despite export challenges, infrastructure providers, particularly those linked to government projects in power, defence, and railways, are expected to thrive. The focus should be on import substitution to boost domestic production, as large-scale private investment is still pending. What is your view on the industrial space ? How are you viewing this space and within this space do you see value in any particular pocket? We just had two results coming in. Engineers India had a stellar quarter, but Cummins India had a slightly muted quarter and their domestic demand contributed most to their revenue, but growth came from exports. Ajay Bagga : If you had asked me about the sector, I would have named that after finance. Overall, if you look at the sector, where will the spend come from? The government continues to spend. So, government spending is happening well. Secondly, spending is coming from households and single firm proprietary entrepreneurs. The private capex is not coming through. So, private capex is a follower always and every year we get optimistic in December that this year will be the year of the private capex, it has not been happening for quite some time and you get the answer in the macro in the output gap. When your capacity utilisation is still under 80%, nobody is in a crying need to put up new factories. When all these tariffs came in, especially the 145% tariff on China, there was excitement China plus one, this that, all our exporters came back and said I am not putting up a factory based on Trump policy which might change in two weeks and it did change, from 145 to 30. How do you make a business plan in that kind of a scenario? So, overall private capex is still some part away which is unfortunate, otherwise we would be growing at 8%. Why we are growing at 6.5 is because the government is doing the heavy lifting and the private consumption expenditure, the Indian household, is doing the heavy lifting. Exports are not growing that fast and fourthly, private capex is not coming. In that, how do you look at the industrials or infrastructure? All the infra providers will do well. Power has taken a backseat last few months because of, now there is some kind of realisation on execution, but power remains evergreen, so anything to do with power whether evacuating power, whether producing power, transmitting it, or setting up storage units, renewables, all those will do well. The infrastructure providing companies will do well, especially those linked to the government. That is why defence and railways always boom near to budget or whenever big order flows are expected to come through they do well and then the government capex-related companies do well. Live Events You Might Also Like: Is bottom-up investment strategy key to unlocking growth in today's market? Krishnan VR explains In private capex, this year we are getting disappointed given the global over capacity. Just to give an idea, 21% of manufacturing goods move across the border in the world, so roughly 80% is consumed within the country. We have to find import substitution ideas where we can produce things within the country and consume them and there those industries linked to them will do well. But overall, stick with the government sector or the very small retail focused capex, the big private capex is probably still due. You Might Also Like: Any dip towards 24,500-24,700 should be looked at as a buying opportunity: Dharmesh Shah India VIX surge due to global issues, still within normal range: Ajay Bagga
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Business Standard
4 days ago
- Business
- Business Standard
Cummins India's growth engines should continue to deliver in FY26
Cummins India 's results for fourth quarter of the financial year 2024-25 (Q4FY25) showed low revenue growth, but strong margins compensated. The company reported 6 per cent year-on-year (Y-o-Y) revenue growth, while Ebitda and PAT declined by 5 per cent and 7 per cent Y-o-Y, prior to adjustment for one-offs, due to a high base effect. Cummins, the country's leading manufacturer of diesel and natural gas engines, will benefit from better volumes for CPCB 4+ products in FY26 as powergen demand recovers further, there is improved growth in railways, and increased penetration of products and improving growth outlook in export markets. Revenue increased 6 per cent Y-o-Y to ₹2,460 crore, but domestic revenue at ₹1,940 crore grew 1 per cent Y-o-Y, while exports at ₹480 crore grew strongly by 39 per cent Y-o-Y. The gross margin at 37.2 per cent saw a 120 basis point (bp) Y-o-Y and 240 bp quarter-on-quarter (Q-o-Q) expansion, while Ebitda margin for Q4FY25 stood at an excellent 21.2 per cent. The absolute Ebitda dipped 5 per cent Y-o-Y to ₹520 crore, and PAT declined 7 per cent Y-o-Y to ₹520 crore. For FY25, the revenue grew 15 per cent Y-o-Y to ₹10,340 crore and Ebitda grew 17 per cent Y-o-Y to ₹2,070 crore, and PAT grew 15 per cent Y-o-Y to ₹1,910 crore, while Ebitda margin expanded 30bp Y-o-Y to 20 per cent. The company's operating cash flow (OCF) and free cash flow (FCF) increased 32 per cent and 46 per cent Y-o-Y respectively to ₹1,690 crore and ₹1,460 crore due to lower net working capital. As of 31st Mar'25, Cummins India was debt-free. The company has three key businesses namely, engines, power systems and distribution. Powergen segment revenue declined by 7 per cent Y-o-Y in Q4FY25, affected by a high base of last year. The Q4FY25 volumes were around 80-85 per cent of Q4FY24 level. For FY25, powergen revenue grew by 14 per cent Y-o-Y, implying some of the volume decline due to CPCB 4+ transition was offset by pricing improvements. Given competitive intensity stabilising and demand recovering from key areas like residential, commercial, and infrastructure, volume growth may recover in FY26. Beyond CPCB 4+, KKC sees strong demand from data centres with a likely compounded annual growth rate (CAGR) of 16.5 per cent in powergen revenues during FY25-27. Management confirmed that demand remains robust across residential, commercial, infrastructure, and quick-commerce warehouses and data centres. Industrial segment delivered a healthy Q4FY25, posting ₹3,800 crore in revenue (up 9 per cent Y-o-Y), and ₹1,700 crore in FY25 (up 28 per cent YoY), reflecting broad-based demand. Momentum is building around specialised applications such as hotel load converters and accident relief trains. The compressor business is steady but anticipated to enter a cyclical downturn. Given a wide product portfolio, high teens growth can be expected across the industrial portfolio. The distribution segment revenue grew by 5 per cent Y-o-Y in Q4FY25 and by 14 per cent Y-o-Y in FY25. The segment benefited from long-term contracts, value-added services, and aftermarket support. Export revenue surged 39 per cent Y-o-Y in Q4FY25. Latin America and Europe continued to perform exceptionally. Management is cautiously optimistic about exports for FY26. Management attributed modest growth in distribution to order timing and project execution schedules. Key drivers included extended warranties, rebuild engine orders (especially in industrials), and retrofit solutions like dual-fuel kits. The company remains confident about future growth in this segment, supported by higher penetration and value-added offerings. Overall, Cummins India has guided for double-digit revenue growth in FY26. This will be driven largely by domestic demand across powergen, industrial, and distribution segments. Cummins is a market leader in diesel gensets. Domestic demand is expected to stay robust while exports seem to be seeing gradual recovery given the current geopolitical scenario, and uncertainty. The company has been able to hold onto pricing post CPCB 4+ and increased competitive intensity. Most analysts seem positive on the stock, which has risen nearly 10 per cent over two sessions post Q4, and the guidance is seen as conservative and credible.
Business Standard
6 days ago
- Business
- Business Standard
Cummins India records 7% YoY drop in Q4 PAT; crosses Rs 10,000 crore annual revenue mark
Cummins India has reported 7% fall in standalone net profit to Rs 521 crore on a 6% rise in total sales to Rs 2,414 crore in Q4 FY25 as compared with Q4 FY24. Domestic sales added up to Rs 1,935 crore (up 1% YoY) and export sales aggregated to Rs 479 crore (up 39% YoY) for the period under review. Total operating expenditure for Q4 FY25 was Rs 1,937.22 crore, up 9.3% YoY. PBIDT decreased by 2.3% to Rs 731.58 crore in the fourth quarter from Rs 748.74 crore recorded in the same period last year. PBIDT margin was 30.3% in Q4 FY25 as against 33.01% in Q4 FY24. Profit before tax in Q4 FY25 stood at Rs 681 crore, which is lower by 3% compared to the same quarter last year. For FY25, Cummins India has registered a standalone net profit of Rs 1,906 crore (up 15% YoY) and total sales of Rs 10,166 crore (up 15% YoY). Shveta Arya, managing director, Cummins India, said: "I am delighted to announce that Cummins India Limited crossed a milestone of ₹10,000 Cr. annual revenue while maintaining its profit margins. We have also witnessed partial recovery in export demand, driven by our sustained efforts in collaborating with trade partners to stimulate growth across key end markets. We are hopeful that this positive trend will continue. While the geopolitical tensions have eased partially, the impact of global tax and trade policies on economic situation is still undetermined in the near to mid-term future. We believe that despite this uncertainty, India is on the path to sustained economic growth considering strong domestic demand and stable export demand." Cummins India is one of the leading power solutions providers in the country. The company is involved in the power generation, aftermarket, and export businesses. The scrip jumped 5.79% to currently trade at Rs 3149.70 on the BSE.
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Business Standard
6 days ago
- Business
- Business Standard
Cummins India rises 7% after posting Q4 results; Why is stock in demand?
Cummins India share price rose 7.3 per cent in trade on Thursday, May 27, 2025, logging an intraday high at ₹3,195 per share on BSE. The stock was in demand after the company released its Q4FY25 results. At 1:19 PM, Cummins India shares were up 6.78 per cent at ₹3,179.2 per share on the BSE. In comparison, the BSE Sensex was down 0.02 per cent at 81,327.41. The market capitalisation of the company stood at ₹88,127.42 crore. The 52-week high of the stock was at ₹4,169.5 per share and the 52-week low of the stock was at ₹2,594.75 per share. Cummins India Q4 result 2025 The diesel and natural gas engines manufacturer reported its Q4 results on Wednesday, after market hours. In the quarter ended March 31, 2025, the company posted a consolidated net profit of ₹529.5 crore as against ₹538.86 crore a year ago, down 2 per cent. Its revenue from operations stood at ₹2,470.38 crore as compared to ₹2,319.02 crore a year ago, up 6.5 per cent. According to Shveta Arya, managing director, Cummins India, the company crossed a milestone of ₹10,000 crore annual revenue while maintaining its profit margins. Also Read She added: While the geopolitical tensions have eased partially, the impact of global tax and trade policies on economic situation is still undetermined in the near to mid-term future. The company's focus will remain on executing a disciplined and profitable growth strategy. With access to the latest technology, a reputable brand, a wide range of superior products, and top-notch manufacturing capabilities, the company is well-positioned for sustainable growth. The company's financial strength and liquidity enable it to strategically navigate opportunities and promote long-term growth. About Cummins India Cummins India Limited is a power solutions provider in the country. The company is involved in the power generation, aftermarket, and export businesses. The company has a strong manufacturing backbone and has five state-of-the-art manufacturing plants, assembly, and distribution facilities. With over 480 customer touchpoints, the company is committed to powering the success of its customers and ensuring that its services and solutions are readily accessible.
Business Standard
6 days ago
- Business
- Business Standard
Cummins India consolidated net profit declines 1.74% in the March 2025 quarter
Sales rise 6.88% to Rs 2428.13 crore Net profit of Cummins India declined 1.74% to Rs 529.50 crore in the quarter ended March 2025 as against Rs 538.86 crore during the previous quarter ended March 2024. Sales rose 6.88% to Rs 2428.13 crore in the quarter ended March 2025 as against Rs 2271.88 crore during the previous quarter ended March 2024. For the full year,net profit rose 16.24% to Rs 1999.94 crore in the year ended March 2025 as against Rs 1720.58 crore during the previous year ended March 2024. Sales rose 15.34% to Rs 10219.24 crore in the year ended March 2025 as against Rs 8859.99 crore during the previous year ended March 2024. Particulars Quarter Ended Year Ended Mar. 2025 Mar. 2024 % Var. Mar. 2025 Mar. 2024 % Var. Sales 2428.132271.88 7 10219.248859.99 15 OPM % 21.6323.70 - 20.3519.97 - PBDT 736.80718.64 3 2777.882365.49 17 PBT 690.31676.26 2 2592.812206.31 18 NP 529.50538.86 -2 1999.941720.58 16
