The company's net profit was flat, lower by a percent at Rs 168.56 crore in Q4 on the back of a sharp spike in the input costs during the quarter.
Shares of Cummins India fell 7 percent on Thursday after the company reported lower than expected earnings growth for the March quarter. The company's net profit was flat, lower by a percent at Rs 168.56 crore in Q4 on the back of a sharp spike in the input costs during the quarter. It posted a profit of Rs 170 crore in the year-ago quarter.
The stock fell as much as 6.9 percent to its day's low of Rs 747.10 per share. At 10:15 am, the stock was down 3 percent ay 780 per share on the BSE.
However, the profit was also affected by the sharp spike in tax costs due to the Rs 75 crore deferred tax credit in the March 2020 quarter.
Meanwhile, it posted an 18.24 percent increase in consolidated revenues for the quarter under review at Rs 1,256.25 crore as against Rs 1,062.46 crore.
Post the earnings, brokerage house Nomura was 'neutral' on the stock with a target at Rs 650 per share. It said that results missed expectations operationally on weaker than expected exports. It also added that the June quarter will also be impacted by higher commodity prices and export uncertainty.
The company did not provide FY22 revenue guidance due to near-term uncertainty.
The Board of Directors has recommended a final dividend of Rs 8 (400 percent) per equity shares on 277,200,000 equity shares (Face Value Rs 2/- each fully paid up) for the financial year ended on March 31, 2021. This is in addition to the interim dividend of Rs 7 per share declared on January 28, 2021.
(Edited by : Ajay Vaishnav)