BENGALURU (Reuters) – Cummins India, a unit of U.S.- based truck engine maker Cummins, reported a 31% surge in first-quarter profit, driven by increasing domestic demand for its power generators.
The company’s consolidated profit after tax rose to 4.63 billion rupees (about $55 million) in the three months ended June 30 from 3.54 rupees a year earlier.
Higher sales in its engines segment, which includes power generator sets, boosted overall sales by 5% to 29.16 billion rupees.
The engine segment contributes to nearly 80% to overall sales.
India’s electricity generation hit record highs in the April-June quarter – peak summer time for the country – fuelling demand for power generators.
Separately, analysts expect the company to benefit from a transition to CPCB IV+ emission norms, effective from July 1. The norms, which are part of the government’s efforts to reduce pollution, will apply to diesel generators with a power output of up to 800 kilowatts, which comprise about 70% of Cummins’ products.
U.S.-based Cummins Inc last week reported higher sales in its power systems segment and forecast improved revenue margins, boosted by demand in the power generation market.
($1 = 83.8850 Indian rupees)
(Reporting by Manvi Pant in Bengaluru; Editing by Sonia Cheema)
