Dividend stock: Cummins India share price jumps after announcement of 900% interim dividend
Cummins India shares rose over 5% on February 6, following strong Q3 results, with an 11.9% YoY profit increase. The Board declared an interim dividend of ₹18 per share, with payment due by March 3, 2025. The stock is up 22% year-over-year.
Shares of Cummins India gained over 5 percent in intra-day trade on February 6, marking the third consecutive session of gains after the company reported strong financial results for the quarter and period ended December 31, 2024. The stock surged 14 percent over these three sessions.
The Board of Directors approved and declared an interim dividend of ₹18 per equity share.
“The Board of Directors have approved and declared an Interim Dividend of Rs. 18/- per equity share i.e. at the rate of 900%, on 277,200,000 equity shares (Face Value Rs. 2/- each) for the Financial Year 2024-25,” the company said in an exchange filing today.
The Board has fixed Friday, February 14, 2025, as the Record Date for determining entitlement of Members for the said interim dividend. The Interim Dividend will be paid by March 3, 2025.
Q3 Results
Cummins India reported an 11.9 percent year-on-year (YoY) increase in profit after tax (PAT) for the quarter ended December 31, 2024, reaching ₹558 crore, compared to ₹499 crore in the same quarter of the previous financial year. The company’s revenue in Q3 FY25 rose 21.8 percent to ₹3,096 crore from ₹2,541 crore in Q3 FY24.
EBITDA stood at ₹589 crore for the quarter, reflecting a 10.1 percent growth from ₹514 crore in the corresponding period last year. However, EBITDA margin declined by 205 basis points (bps) YoY to 19.3 percent from 21.3 percent in Q3 FY24.
Shveta Arya, Managing Director of Cummins India, noted that while inflation was easing in most countries, uncertainty in different regions persisted, impacting the global economic outlook. She highlighted that US policy would play a crucial role in shaping the global economy in the coming years. Despite uncertainties in global markets, she said the Indian economy was recovering well after slower growth in Q2 FY25, with strong GST collections and key indicators like IIP and PMI suggesting a reasonable economic outlook.
Arya added that Cummins India continued to execute its profitable growth strategy, achieving its highest-ever quarterly revenue due to strong demand across segments.
While Cummins is widely recognized for its truck engines, power generators, or gensets, remained its top business in India. Sales of engines and power generators contributed to the company’s entire revenue in the third quarter.
Stock Price Trend
The stock jumped as much as 5.3 percent to its intra-day high of ₹3075.95, extending gains after a 2.4 percent and 5.6 percent rise in the last 2 previous sessions, respectively.
The scrip has added almost 22 percent in last 1 year and 1.6 percent in February so far. The rise in February comes after 4 straight months off losses. It fell 11 percent in January, 6 percent in December, 0.5 percent in November and 8 percent in October.
Currently, the stock is over 26 percent away from its peak of ₹4,169.50, hit in June 2024, meanwhile, it has advanced almost 30 percent from its 52-week low of ₹2,373.40, recorded in February 2024.
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