Diesel and gas engine major Cummins India today reported its financial result for Q1 FY2020. The company reported revenue of Rs 1,316 crore, marginal growth of 2 percent as compared to Rs 1,296 crore reported for the same period last year, and comparably flat as compared to Rs 1,314 crore recorded in the preceding quarter.
The domestic sales in the current quarter came at Rs 990 crore, a growth of 16 percent YoY, but essentially remain flat as compared to Rs 992 crore, witnessed in the preceding quarter. The company reported exports declined by 26 percent YoY at Rs 327 crore. For Q1 FY2020 the PAT came at Rs 152 crore, down 17 percent, compared to Rs 184 crore reported for the same period last year.
Sandeep Sinha, MD, Cummins India, said: "Domestic business registered strong growth over the previous year across all segments of the business. This could have been even more robust, however order intake was impacted by the liquidity crunch in the economy as shadow banks went into a crisis mode, as well as uncertainty prevailing in the run up to the elections led to a delay in projects approvals. This is likely to play out further for at least another quarter, but revival is expected, albeit gradually thereafter."
"Our confidence on the medium- to long-term outlook on domestic sales, especially from the infrastructure sectors, is even higher as stated allocations from the fiscal union budget positively impact this sector. Export markets have however displayed softness in recent quarters, arising from global economic challenges. In this quarter we also experienced decline in certain markets within the global Power generation business, where conditions became weak, based on difficulties that some of these economies are now experiencing. We continue to be positioned to outperform in our industry and are investing judiciously in product enhancements, increasing our customer focus, while maintain strong controls on our cost of operations. Improving productivity and quality are strong focus areas as we continue delivering value to all our stakeholders,” concluded Sinha.