(Reuters) – Cummins India, a unit of U.S.-based truck engine maker Cummins, reported a higher second-quarter profit on Thursday, helped by robust demand for its engines and power generators.
The diesel and natural gas engine maker’s consolidated profit after tax came in at 4.49 billion rupees ($53.3 million) for the three months ended Sept. 30, up from 3.29 billion rupees a year earlier.
The company’s revenue increased due to price hikes, particularly for its CPCB 4+ generator sets, analysts said.
These generator sets comply with the latest environment-friendly emission standards set by India’s federal pollution control board.
A restock in inventory and steady demand across all its segments helped increase volumes, analysts added.
Sales in its engine segment, which includes power generator sets and contributes nearly 80% to overall sales, grew 30% during the quarter.
The segment boosted overall quarterly sales to 30.09 billion rupees.
India’s infrastructure is growing in tandem with power demand, ensuring that sales for the company’s products remain high despite price increases, the company had said in August.
Cummins India’s income from operations grew 30% to 24.65 billion rupees in the second quarter. Costs of materials, which account for more than half of its total expenses, rose 38.4%.
Parent Cummins Inc beat third-quarter profit estimates earlier this week, due to robust demand for its power generation products.
Cummins’ shares closed 1.6% lower ahead of the results and have climbed 81% so far in 2024.
($1 = 84.2900 Indian rupees)
(Reporting by Meenakshi Maidas and Kashish Tandon in Bengaluru; Editing by Abinaya Vijayaraghavan and Shreya Biswas)
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