Auto ancillary stock in focus: Rs 33.5 dividend declared, revenue crosses Rs 10k cr milestone

Cummins India shares are in focus on Thursday after the firm announced its Q4 results. Net profit slipped 7% to Rs 521 crore in the fourth quarter of the financial year compared to Rs 561 crore in the same quarter last year.  Despite this decrease, the company exceeded analysts' projections, which estimated a profit of Rs 476 crore.

Total sales for the quarter rose 6% to Rs 2,414 crore compared to the corresponding quarter last year and lower by 21% compared to the previous quarter.

Additionally, the board has approved a final dividend of Rs 33.5 per share for FY25, complementing the interim dividend of Rs 18 declared in February. Once shareholders give their approval at the upcoming Annual General Meeting, the final dividend is expected to be paid around September 2.

Shveta Arya, Managing Director, Cummins India Limited said, "I am delighted to announce that Cummins India Limited crossed a milestone of Rs 10,000 Cr. annual revenue while maintaining its profit margins. We have also witnessed partial recovery in export demand, driven by our sustained efforts in collaborating with trade partners to stimulate growth across key end markets. We are hopeful that this positive trend will continue."

Total sales for the year rose 15% to Rs 10,166 crore compared to the last year. Profit after tax came at Rs 1,906 cr, higher by 15% compared to the last year. 

Cummins India is a leading producer of diesel and natural gas engines. It belongs to the auto ancillary industry. It has a country-wide network of 20 dealerships with over 450 service points that provides products, services, and after-market solutions for the uptime of Cummins equipment and engines to customers in India, Nepal, and Bhutan.