Cummins India is currently the top gainer on the BSE; from its close of Rs.1475.35, it opened much higher today at Rs.1540 and went on to hit a new 52-week high at Rs.1618. Volumes are huge, over 11.5x.
The market has obviously given a big thumbs up to the company’s Q3FY23 performance with a 50% (YoY) jump in net profit at Rs.360 crore on a 26% jump in total revenue at Rs.2144 crore.
Domestic sales rose 27% while exports were up 23%.
The company said that the moderation in commodity costs, oil, and other industrial raw material coupled with easing inflation, the buoyant tax collections economy continued to sustain growth momentum. The company services a broad spectrum of the economy, and it expects to see continued demand from end markets like data centers, commercial real estate, rental, infrastructure, healthcare, and telecom, etc.,
Looking ahead, supply chain challenges, especially for specific electronic and other components remain. With geopolitical risk and inflation likely to slow down developed markets, the company said that it remains cautiously optimistic about the short to medium-term demand outlook.