Cummins India Ltd. share price target

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