February 2, 2016
For Immediate Release
Cummins India Limited Results for the Third Quarter 2015-16, declares interim dividend of 250%
Pune, India: The Board of Directors of Cummins India Limited took on record the unaudited financial results for the quarter ended December 31, 2015 in their meeting held today.
Net sales of the Company for the quarter ended December 31, 2015 at ₹ 1,116 crores increased 6 percent as compared to ₹ 1,057 crores recorded in the same period last year and decreased 4 percent as compared to ₹ 1,116 crores recorded in the preceding quarter. Net sales for the nine months ended December 31, 2015 at ₹ 3,565 crores increased 11 per cent compared to ₹ 3,207 crores recorded in the same period last year. Domestic sales grew whereas exports declined both year on year as well as sequentially.
Net profit before tax at ₹ 207 crores remained flat compared to the same period last year but dropped 14 percent compared to ₹ 241 crores recorded in the preceding quarter. The current quarter operating results have been negatively impacted by a onetime charge of ₹ 16 crores on account of an excess inventory provision taken in accordance with a consistent time based policy for certain slow moving inventory items based on the demand projections for those products. It is however expected that these items will see demand in the next two year timeframe. Net profit before tax for the nine months ended December 31, 2015 decreased 1 percent to ₹ 705 crores as compared to ₹ 715 crores in the same period last year.
Anant J. Talaulicar, Chairman & Managing Director, Cummins India Limited said, "As domestic markets continue to gradually improve, our domestic business grew 3 percent sequentially primarily owing to our industrial off highway engine and distribution businesses. As compared to the same quarter last year, our domestic business grew 12% mainly due to growth in the power generation and distribution businesses. We continue to either improve or maintain our market share position. We generated strong cash flow in the quarter. Global markets have worsened this year. However, the company remains positive about the improvement prospects in the domestic market arising from the Government's focus on infrastructure improvement".
"The CIL board has proposed that CIL would run the minor analysis-led design activities which is carried out by Cummins Research Technologies India Private Limited (a joint venture company of Cummins India Limited.) for CIL, in-house by absorbing the appropriate number of employees from CRTI into CIL. This will further enable CIL to enhance efficiency, optimize the response time, reduce the administrative procedures and avoid duplication of efforts. In short, there will be simplicity in running the same activities in a more effective manner. On completion of the absorption of the appropriate number of employees, CIL would exit from the operations of CRTI and its shareholding"
About Cummins India Limited
Cummins India Limited, headquartered in Pune since 1962, is the country's leading manufacturer of diesel and natural gas engines for power generation, industrial and automotive markets.
About Cummins in India
Cummins in India, a power leader, is a group of complementary business units that design, manufacture, distribute and service engines and related technologies, including fuel systems, air handling, filtration, emission solutions and electrical power generation systems. Its technology and pioneering initiatives are bringing innovative solutions and dependable services at the best possible value to users across the country. Its high performance outlook is based on customer focus, integrity and capability of its people. Part of the US $19.2 billion Cummins Inc., Cummins in India is a Group of eight legal entities across 200 locations in the country with a combined turnover of ₹10,262 crores in 2015 and employing over 10,000 individuals.