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Home arrow Business News arrow Cummins India Ltd records net sales of Rs. 1,070 crore for Q2 FY2011
Cummins India Ltd records net sales of Rs. 1,070 crore for Q2 FY2011 Print E-mail
Written by Vijay   
Friday, 11 November 2011
Mumbai: Cummins India Limited, the country's leading manufacturer of diesel and natural gas engines, recorded net sales of Rs. 1,070 crore for the quarter ended September 30, 2011, up from the previous high of Rs 1,068 crore recorded in the same period last year. For the half year ended September 30, 2011, it recorded net sales of Rs. 2,092 crore, an increase of 5.8% from Rs. 1,978 crore over the same period last year.

"Growth in exports, albeit not yet at historic peak levels, helped us achieve record sales levels in the quarter. Domestic sales were flat sequentially and down 5% as compared to the same quarter last year," said Anant J Talaulicar, Chairman & Managing Director, Cummins India Limited.

Net profit before tax in the second quarter, however declined by 20% to Rs. 182 crore compared to Rs. 228 crore in the same period last year, and for the half year ended September 30, 2011, profit before tax excluding exceptional items declined by 12% to Rs.374 crore as compared to Rs. 425 crore in the same period last year.

"Consistent interest rate increases over the last year have dampened demand particularly in the power generation market. The dip in our earnings this quarter is largely due to an adverse mix with a decline in larger engine sales and a growth in smaller engine sales, aside from commodity inflation," he said.

"Our cost reduction programs including Six Sigma have helped mitigate the adverse impacts to some extent. While the demand environment has worsened in the short term, we remain confident about our long term profitable growth prospects. We are positioned very strongly to weather adverse circumstances given our strong market position and cash balances. Our investments in capacity creation continue with the inauguration of the fourth new project at the Cummins Megasite in Phaltan - the India Parts Distribution Center. We remain steadfast about sustaining our market leadership based on our technology, quality, customer service and people, and above all on staying committed to our Brand Promise of Dependability," Talaulicar added.

Part of the US $13.2 billion Cummins Inc., Cummins in India is a Group of eight legal entities with a combined turnover of approximately Rs. 8,600 crore, and employing more than 11,000 individuals across 200 locations in the country.

 
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