Company Update : Cummins India Ltd By Motilal Oswal Financial Services Ltd
Healthy performance on all fronts
* Cummins India reported a strong result with a beat on all parameters. Revenue came in at INR30.9b, up 22% YoY/24% QoQ (our est. INR26.9b). The company delivered healthy YoY growth even on a high base of last year, which had a one-off element of data center project delivery. We expected a 6% YoY growth in revenue for 3QFY25.
* Domestic revenue at INR25.8b grew 18% YoY, while exports at INR4.6b rose 43% YoY. Exports have been continuously moving up since 4QFY24.
* The gross margin at 34.8% saw a 220bp YoY/100bp QoQ contraction, while the EBITDA margin for 3QFY25 stood at 19.4% vs. our estimate of 19.5%. EBITDA margin is down YoY mainly due to the one-off impact of a large project delivery in 3QFY24. These margins are in line with management’s outlook of 19.0-19.5% margins for the full year.
* PAT came in at INR5.1b, 9% ahead of our estimates, driven by betterthan-expected revenue growth and a slightly lower tax rate (YoY).
* For 9MFY25, the company delivered revenue/EBITDA/PAT growth of 19%/27%/26%.
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