ECONOMY

Cummins India Q4 Review – Tailwinds Ahead: Dolat Capital

BQ Blue’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages, asset managers and research agencies. These reports offer BloombergQuint’s subscribers an opportunity to expand their understanding of companies, sectors and the economy.

Cummins India Ltd. reported a good operational performance with a revenue growth of 18% YoY at Rs 12.6 billion (down 11% versus our estimate) as domestic sales improved by 26% YoY while exports declined by 1% YoY.

Ebitda grew by 151% YoY as margin expanded by 714 basis points to 13.5%, but came in lower than our estimate of 16% due to increased raw material prices and unfavorable mix (export sales contribution ~20%, down 400 basis points YoY).

Government’s thrust on the road, rail and metro projects via national infrastructure pipeline of ~Rs 110 trillion plus along with new investments into data center and 5G will aid in faster demand revival for the company’s products.

Click on the attachment to read the full report:

Dolat Capital Cummins India Q4FY21 Result Update.pdf

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