Cummins India Ltd. share price target

Cummins reported a robust Q3 revenue print; margin remains off its peak levels seen in H2FY24 (though still robust). A sequential revenue jump of 24% was largely driven by the HHP segment of the domestic power gen business (74% contribution to incremental revenue QoQ).

Cummins India’s (KKC) 2QFY25 results exceeded our and consensus estimates, with 31%/42%/37% YoY growth in revenue/EBITDA/PAT.

From our recent interaction with the management, Cummins India (KKC) appears to be well positioned to benefit from the change in emission norms for diesel gensets.

Cummins India’s Q1FY25 print stood impressive (soft revenue growth, stellar margin expansion) with management commentary exuding optimism for domestic business in near term.

Cummins India Ltd (CIL) reported Standalone operating profit/ APAT growth of 37.2%/ 33%, beat our estimates. Revenue was flat with growth of 4% y-o-y to Rs 2.304 crore, hit by a 22% decline in export sales.

Cummins India (KKC)’s 1QFY25 results exceeded our and consensus estimates, with 4%/37%/33% YoY growth in revenue/EBITDA/PAT.

The company reported strong beat on Q4FY2024 consensus earnings estimates, with standalone revenue/ operating profit/adjusted net profit growth of 20%/67%/76% y-o-y to Rs. 2,316 crore/Rs. 544 crore/Rs. 562 crore, respectively

Strong Q3 topline growth of 16% YoY despite lower exports, along with 330bps gross margin expansion as input costs eased

Q2 gross/EBITDA margins expand 500bps/320bps YoY on lower input costs, sustained pricing and better product mix

Cummins India reported revenue / EBITDA / PAT growth of 31% / 59% / 51% YoY at INR 22.1bn / 3.4bn / 3.2bn respectively. Powergen segment (+76% YoY) benefited from domestic and pre-buying demand. The Central Pollution Control Board (CPCB) has changed the deadline for CPCB II genset sales to Jun’24.

Domestic pre-buying buoys quarter; new emission norms delayed but KKC well positioned to manage the transition

Cummins India (Cummins) reported a strong set of numbers for Q4FY23 with sales at Rs19bn (up 29% YoY). EBITDA margin expanded by ~290bps YoY leading to EBITDA / PAT growth of 56% / 67% YoY to Rs3.2bn / Rs3.2bn respectively.

Operationally strong Q4 despite supply chain constraints, with EBITDA and PAT each up ~60% YoY; exports resilient