Cummins India Q3 Result Preview: Standalone profit, EBITDA to decline; revenue to rise 4.6%

Cummins India is expected to report mixed numbers for the third quarter of the ongoing fiscal year (Q3 FY24), as per Zee Business analysts. The company will announce its Q3 results on Wednesday, February 7.

Analysts estimate the standalone net profit to decline 3 per cent year-on-year (YoY) to Rs 350 crore against Rs 360 crore logged in the corresponding quarter of the previous year owing to an increase in employee costs.

Meanwhile, the revenue is estimated to grow 4.6 per cent YoY to Rs 2,280 crore against Rs 2,180.5 crore a year ago. Furthermore, analysts peg the earnings before interest, tax, depreciation, and amortisation (EBITDA) at Rs 385 crore for the quarter that ended December 31 against Rs 412 crore recorded a year ago, which implies a 7 per cent decline.

On the margin front, analysts expect a decline of 200 basis points (bps) to 17 per cent against 19 per cent in the year-ago period.

Normal demand is anticipated in the domestic power generation business, with a 5-7 per cent increase in income. Export business is likely to plunge due to the slowdown in Europe, China, and the Middle East.

Cummins India Q2 results 

Engines and related parts maker Cummins India reported a 30.4 per cent year-on-year (YoY) jump in standalone net profit at Rs 328.5 crore for the second quarter that ended September 30, 2023.

The company's standalone revenue from operations declined 2.6 per cent to Rs 1,899.7 crore against Rs 1,951 crore logged in the corresponding period of the preceding fiscal.

The company's EBITDA rose 16.5 per cent YoY to Rs 338.6 crore in the second quarter of this fiscal.

The EBITDA margin stood at 18 per cent in the September quarter, as compared to 15 per cent in the corresponding period in the previous fiscal.

Cummins India share price: Past performance 

Since February 2023, the stock has gained 65 per cent against the Nifty50's rise of over 23 per cent.

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