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Cummins India's quarterly profit rises on higher demand for power generators
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Cummins India's quarterly profit rises on higher demand for power generators
Aug 6, 2024 7:36 AM

BENGALURU, Aug 6 (Reuters) - Cummins India, a

unit of U.S.- based truck engine maker Cummins, reported

a 31% surge in first-quarter profit, driven by increasing

domestic demand for its power generators.

The company's consolidated profit after tax rose to 4.63

billion rupees (about $55 million) in the three months ended

June 30 from 3.54 rupees a year earlier.

Higher sales in its engines segment, which includes

power generator sets, boosted overall sales by 5% to 29.16

billion rupees.

The engine segment contributes to nearly 80% to overall

sales.

India's electricity generation hit record highs in the

April-June quarter - peak summer time for the country - fuelling

demand for power generators.

Separately, analysts expect the company to benefit from

a transition to CPCB IV+ emission norms, effective from July 1.

The norms, which are part of the government's efforts to reduce

pollution, will apply to diesel generators with a power output

of up to 800 kilowatts, which comprise about 70% of Cummins'

products.

U.S.-based Cummins Inc ( CMI ) last week reported higher

sales in its power systems segment and forecast improved revenue

margins, boosted by demand in the power generation market.

($1 = 83.8850 Indian rupees)

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