The Board of Directors of Cummins India Limited reviewed the audited financial results for the quarter and year ended March 31, 2020.
Q4 FY20 Highlights:
Revenue: ₹1,032 Cr, down 21% YoY and 28% QoQ, mainly due to Covid-19 lockdown and economic slowdown. Without lockdown impact, decline would be 7% YoY and 14% QoQ.
Domestic sales: ₹775 Cr, down 22% YoY and 27% QoQ.
Exports: ₹257 Cr, down 20% YoY and 31% QoQ.
Profit before tax (excl. exceptional items): ₹121 Cr, down 42% YoY and 52% QoQ.
FY20 Highlights:
Revenue: ₹5,062 Cr, down 8% YoY.
Domestic sales: ₹3,771 Cr, down 3% YoY; excluding lockdown impact, a 2% growth.
Exports: ₹1,291 Cr, down 22% YoY.
Profit before tax (excl. exceptional items): ₹779 Cr, down 24% YoY.
Management Commentary:
Ashwath Ram, Managing Director, attributed the revenue and EBITDA decline primarily to the Covid-19 lockdown and ongoing economic slowdown since FY19. Export markets remain weak due to global challenges, worsened by the pandemic. Cummins India is leveraging a strong balance sheet and cost optimization to navigate the downturn while prioritizing employee and community safety.
Outlook for FY21:
With gradual resumption post-lockdown, the company remains focused on safety and customer service but refrains from providing revenue guidance due to ongoing economic uncertainties linked to Covid-19.
About Cummins India Limited:
Headquartered in Pune since 1962, Cummins India is a leading manufacturer of diesel and natural gas engines for power generation, industrial, and automotive markets. It is part of the US $23.6 billion Cummins Inc. group, with over 10,000 employees across 200 locations in India and a combined turnover of over ₹13,700 Cr in 2019.
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