Cummins India have surged 14% to Rs 769 per share on the
BSE after the company reported a better-than-expected 39% year-on-year (Y-o-Y) jumped in its net profit at Rs 2.12 billion in September quarter, on back of higher revenue. It had a profit of Rs 1.53 billion in the same quarter a year ago.
The company achieved the highest ever sales of Rs 14.52 billion in Q2FY19, up 30%, as compared to Rs 11.18 billion recorded in the same quarter last year.
Analysts on an average had expected a profit of Rs 1.69 billion on sales of Rs 12.69 billion for the quarter.
Ebitda (earnings before interest, tax, depreciation and amortization) margin improved 240 bps at 16.9% in Q2FY19 from 14.5% in Q2FY18.
The healthy growth in sales was due to strong demand across all our three markets – Industrial, Powergen and Distribution. The company is confident on the medium to long-term outlook for domestic sales as underlying demand remains positive, arising from sustained investments by the government in creating infrastructure for the Indian economy.
At 10:31 am; the stock was trading 12% higher at Rs 753 on the BSE, as compared to a 0.6% decline in the S&P BSE Sensex. The trading volumes on the counter jumped more than 10-fold with a combined 1.81 million equity shares changed hands on the BSE and NSE so far.