Cummins India corrected because of the fear that the second wave of COVID-19 would hit the engineering company. However, the company is expected to see a marginal impact only.
The company’s utilisation has fallen to about 50 percent in April and May as against a level of 70 percent seen in the Q4FY21. The current quarter (Q1FY22) could be slow and could lead to some pressure on earnings. However, these issues could gradually ease from Q2FY22 and there could be some growth in earnings on an annualized basis.
In the special segment Moneycontrol Pro Ideas For Profit, moneycontrol.com’s Jitendra Gupta gets more details on the company’s performance going forward.
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