Cummins India Limited , a leading power solutions provider, has reported an impressive financial performance for the first quarter, showcasing robust growth across key metrics.

Strong Revenue Growth

The company's total sales for the quarter stood at ₹2,859.00 crore, marking a significant increase of 26% compared to the same quarter last year. This growth was driven by strong performance in both domestic and export markets.

• Domestic sales reached ₹2,336.00 crore, up by 25% year-over-year and 21% quarter-on-quarter.
• Export sales climbed to ₹523.00 crore, registering a substantial 34% year-over-year growth and a 9% increase from the previous quarter.

Profitability Soars

Cummins India's profitability saw a remarkable improvement:

• Net profit rose to ₹589.00 crore, representing a 40% jump from ₹420.00 crore in the same period last year.
• Profit before tax (before exceptional items) increased by 32% year-over-year to ₹726.00 crore.
• EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) grew to ₹624.00 crore from ₹470.00 crore in the previous year.

Margin Expansion

The company's operational efficiency was evident in its improved margins:

• EBITDA margin expanded to 21.83% from 20.31% in the corresponding quarter last year.

Management Commentary

Shveta Arya, Managing Director of Cummins India Limited, expressed satisfaction with the company's performance, stating, "I am pleased to announce that Cummins India Limited continues to deliver revenue growth backed by steady demand across markets and better execution of orders. We have achieved record quarterly profit owing to volume leverage and operational efficiencies."

Market Outlook

Despite global economic uncertainties, the company remains optimistic about its future prospects. Arya added, "We believe that despite this uncertainty, we see continued opportunity as India's economy remains stable due to government's infrastructure push and recent reductions in interest rates to support economic growth given the low inflation environment."

Future Strategy

Cummins India is well-positioned to capitalize on emerging opportunities:

• The company has a diversified portfolio of products that meet evolving emission norms.
• It maintains a focus on operational efficiencies through cost management.
• Emphasis on customer centricity, talent development, and shareholder value creation remains strong.

With its strong brand, wide product range, advanced manufacturing capabilities, and extensive distribution network, Cummins India is poised for continued growth in both domestic and international markets.

About Cummins India Limited

Established in 1962, Cummins India Limited is a leading power solutions provider in India. The company is involved in power generation, aftermarket services, and exports. With five state-of-the-art manufacturing plants and over 480 customer touchpoints, Cummins India employs over 3,000 people and is committed to powering a more prosperous world.

As Cummins India Limited continues to demonstrate strong financial performance and strategic positioning, it remains a key player in India's power solutions sector, well-equipped to meet the evolving needs of its customers and contribute to the country's economic growth.

Cummins India Limited , a leading manufacturer of engines and related technologies, has been hit with a customs penalty of Rs 1.43 crore over alleged import classification issues. The company plans to appeal the decision, maintaining that the penalty will not materially impact its financial or operational activities.

Penalty Details

The Office of the Principal Commissioner of Customs, Mumbai, issued an Order-In-Original (O-I-O) to Cummins India, imposing a total penalty of Rs 1,43,46,400. This amount consists of:

• Differential customs duty: Rs 71,73,200
• Penalty under Section 114A of the Customs Act, 1962: Rs 71,73,200

The penalty stems from allegations of incorrect classification of imported goods using wrong Harmonized System of Nomenclature (HSN) codes under the Customs Act, 1962.

Company's Response

Cummins India received the order on July 22 and promptly disclosed the information to the stock exchanges on July 25, in compliance with SEBI regulations. The company has stated its intention to file an appeal with the Customs Excise and Service Tax Appellate Tribunal (CESTAT), seeking withdrawal of both the demand and the penalty.

In its regulatory filing, Cummins India emphasized that the penalty "neither have any material impact on the financials of the Company nor have any impact on operational or other activity of the Company."

Upcoming Investor Communication

In a separate announcement, Cummins India has scheduled a conference call for analysts and investors on August 8, at 12:00 Noon IST. The call will follow the announcement of the company's unaudited financial results for the quarter ended June 30. Ms. Shveta Arya, Managing Director of Cummins India Limited, along with other members of the management team, will be present to address questions from participants.

Investors and analysts interested in participating in the conference call can access it through various international toll-free numbers or a universal dial-in number provided by the company.

As Cummins India navigates this regulatory challenge, stakeholders will be keenly watching the outcome of the appeal and its potential implications on the company's import practices and financial statements.