While domestic sales declined by 22% year-on-year (YoY) to Rs 743 crore, exports improved by 18% YoY to Rs 398 crore during the quarter.

Profit before tax in Q2 September 2020 stood at Rs 188.68 crore, down by 10.2% from Rs 210.22 crore in Q2 September 2019. Current tax expense surged 108.3% to Rs 47.08 crore in the second quarter from Rs 22.60 crore in the same period last year,

Ashwath Ram, managing director, Cummins India, said: Following the steep drop in demand and disruption in supply chain in the first quarter of the fiscal year marked by nationwide lockdown, second quarter witnessed a significant improvement in economic activities. Our Domestic business has recovered to 80% of last year levels, led by faster recovery in distribution, construction and mining segments, as we expect gradual recovery in powergen segment.

Export business grew 18% over last year due to pent-up demand and early signs of demand recovery in few export markets. The company continues to monitor the business conditions and is working closely with supply chain partners to restore operational productivity.

In its outlook, the company said it expects gradual recovery of demand in upcoming quarters. With market conditions continue to remain uncertain and visibility for end market recovery still somewhat limited, the company is not providing a full year revenue guidance for FY2021.

Cummins India is a manufacturer of diesel and natural gas engines for power generation, industrial and automotive markets.

The scrip rose 1.58% to Rs 449.60 on the BSE. It traded in the range of 439.35 and 450.30 so far during the day.

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Net profit of Cummins India declined 5.29% to Rs 172.90 crore in the quarter ended September 2020 as against Rs 182.56 crore during the previous quarter ended September 2019. Sales declined 11.26% to Rs 1151.26 crore in the quarter ended September 2020 as against Rs 1297.30 crore during the previous quarter ended September 2019.

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Cummins India will hold a meeting of the Board of Directors of the Company on 28 October 2020.

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Cummins India announced the resignation of Mark Levett (DIN: 00368287) as Chairman & Non-Executive Director with effect from 30 September 2020.

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