Cummins India Q4 results: Net profit zooms 68% YoY to ₹319 Cr, Board declares 650% dividend
2 min read 24 May 2023, 03:07 PM ISTCummins India Limited is a mid-cap capital goods company that announced its Q4 and FY23 results today along with a whopping dividend of 650% for its eligible shareholders.
PremiumCummins India Limited is a mid-cap capital goods company that announced its Q4 and FY23 results today along with a whopping dividend of 650% for its eligible shareholders.
“We wish to inform the exchange that the Board of Directors have recommended Final Dividend of Rs. 13/- (650%) per equity shares on 277,200,000 equity shares (Face Value Rs. 2/- each fully paid up) for the financial year ended on March 31, 2023, in addition to the interim dividend of Rs. 12/- per share declared on February 08, 2023. The said final dividend, if approved by the Members at the Annual General Meeting, will be paid on August 31, 2023," said Cummins India in a stock exchange filing.
July 26, 2023 (Wednesday) has been fixed as the record date for the purpose of dividend.
The company’s total standalone sales for the quarter ended March 2023 stood at ₹1,889 Cr. which increased by 29% YoY compared to ₹1,468.50 Cr in the quarter ended March 2022. The company said its standalone domestic sales reached ₹1,396 Cr. increased by 33% YoY and exports sales stood at ₹493 Cr during the quarter under review, up by 17% compared to the same quarter last year.
During Q4FY23 the standalone net profit of Cummins India reached ₹319 Cr which is higher by 68% from ₹189.15 Cr recorded during Q4FY22. Whereas, the EPS climbed to ₹11.49 from ₹6.82.
For the year ended March 31, 2023, the total standalone sales stood at ₹7,612 Cr up by 26% from ₹6,025 Cr in FY22. The company's standalone domestic sales were at ₹5,562 Cr up by 26% and exports sales stood at ₹2,050 Cr up by 27% YoY compared to the last year. During 12MFY23 its standalone net profit stood at ₹1,130 Cr up by 27% YoY from ₹887 Cr in 12MFY22.
Ashwath Ram, Managing Director, Cummins India Limited, said “The Indian economy continues to be resilient amidst inflationary economic conditions, rising interest rates, and ongoing geo-political crises. Fiscal and monetary policy measures are conducive to sustaining the economic growth rate. With softening commodity prices, stable consumption provides optimism for sustaining the economic growth rate of the Indian economy. Government spending on infrastructure promotes various segments, resulting in better capacity utilization and early signs of private capex. Global end markets for export held up well for the year, while monetary policy actions by various central banks around the world to contain inflation may pose a challenge to consumption in the near term."
“For the year ended March 31, 2023, CIL reported record revenue for the second financial year in a row, driven by strong domestic and export demand. This, coupled with pricing actions and prudent cost management, resulted in a record profit for the year. However, given the emission changes from July and continued supply chain challenges, especially for specific electronic and other components, we remain cautiously optimistic about the short to medium-term demand outlook," said Ashwath Ram.
“The CPCB IV+ norms will become effective July 1, 2023, for gensets up to 800 kW. The company is ready with its products to meet the new emissions norms and is confident of offering the best-in-class products to its customers which will continue to deliver superior performance and meet the new emission norms," he further added.
