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)