The stock of Cummins India experienced a 5 percent increase on February 6 intra-day trading because the company delivered impressive financial results for both the December 31, 2024 quarter and period. During these three days, the stock price has escalated by 14 percent.
The Board of Directors decided to give an interim dividend payment of ₹18 per equity share to shareholders.
As per the Board of Directors’ decision, Cummins India paid an Interim Dividend at Rs. 18 per equity share, equating to a dividend yield of 900% to all 277,200,000 equity shareholders with a face value of Rs. 2 per share during the financial period of 2024-25.
Members will receive the interim dividend payment based on the records established on the date of February 14, 2025. The company will pay out an Interim Dividend to shareholders on March 3, 2025.
During the third quarter of the financial year 2024-25, Cummins India recorded an 11.9% growth in profit after tax, reaching ₹558 crore compared to ₹499 crore from the previous period. The company’s revenue in Q3 FY25 rose 21.8 percent to ₹3,096 crore from ₹2,541 crore in Q3 FY24.
During the October-December quarter of this year, EBITDA recorded a growth of 10.1 percent since reaching ₹589 crores. This figure stood higher than the corresponding period’s ₹514 crores last year. The recently reported EBITDA margin showed 205 basis points (bps) yearly decrease from 21.3 percent to 19.3 percent in Q3 FY24.
Managing Director Shveta Arya of Cummins India remarked that although global inflation rates became less severe most nations faced ongoing regional market uncertainties which influenced global economic projections.
According to her, the upcoming global economic developments will heavily depend on US policy decisions. She reported that the Indian economy was showing a strong recovery after the Q2 FY25 period experienced subdued growth.
Factors Driving Growth
The company’s strong performance was attributed to consistent demand for its power generators. Cummins derives its revenue in India from the sale of engines and power generators. This segment’s resilience has helped to offset broader market concerns.
Cummins Inc. has projected a 10% increase in total revenue in India, including joint ventures, for 2024. This growth is expected to be driven by strong power generation demand. To meet this rising demand, Cummins plans to invest $200 million across its manufacturing sites in the U.S., England, and India to increase capacity.