Cummins India surges 14% as Q2 earnings beat estimates

Cummins India surges 14% as Q2 earnings beat estimates

Shares of
have surged 14% to Rs 769 per share on the
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 – 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.

is the country’s leading manufacturer of diesel and natural gas engines for power generation, industrial and automotive

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 Sensex. The trading volumes on the counter jumped more than 10-fold with a combined 1.81 million equity shares changed hands on the and so far.