Feb 4 (Reuters) - Engine maker Cummins India
reported a nearly 6% rise in adjusted quarterly profit on
Wednesday, helped by lower expenses despite a drop in revenue
from a year ago.
The company, a unit of U.S.-based truck engine maker Cummins
Inc ( CMI ), posted consolidated profit before tax and
exceptional items of 6.95 billion rupees ($76.89 million), up
from 6.57 billion rupees a year ago.
Profit after tax fell nearly 13% to 4.86 billion rupees, due
to a one-time charge of 1.27 billion rupees related to India's
new labour codes.
Cummins' Indian unit is a key supplier of power generation
equipment to industrial clients and also produces engines for
trucks and ships, as well as propulsion systems for trains.
India's industrial output picked up towards the end of the
quarter along with manufacturing activity. After a 0.5% rise in
October, output jumped 7.2% in November and 7.8% in December.
Analysts had said they expect modest sales growth for
Cummins in the quarter due to a high base in the year-ago
period, noting a slowdown in orders for power generating
equipment from data centres due to "front-ending" of deliveries
in the second quarter.
Cummins' income from operations fell 1.5% to 30.06
billion rupees. Expenses dropped nearly 3% for the quarter, to
24.75 billion rupees.
Shares of the company closed 0.88% higher ahead of the
results.
($1 = 90.3920 Indian rupees)