Cummins India Q4 Review - Earnings Beat Aided By Higher Other Income: Motilal Oswal

Cummins India Ltd. office (Source: Company website).

Cummins India Q4 Review - Earnings Beat Aided By Higher Other Income: Motilal Oswal

BQ Blue’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages, asset managers and research agencies. These reports offer BloombergQuint’s subscribers an opportunity to expand their understanding of companies, sectors and the economy.

Motilal Oswal Report

Cummins India Ltd.’s Q4 FY21 revenue growth was weak, in-line with expectations.

It increased 18% YoY on a weak base (Q4 FY20: down 22%).

Domestic revenue was up ~26% YoY, while exports remained sluggish (flat YoY).

However, persistent cost-cutting measures (employee cost down 5% YoY and other expenses down 30% YoY) resulted in Ebitda margin of 13.4%.

Adjusted profit after tax stood 53% higher YoY and was 19% above our estimate, led by higher-than-estimated other income.

Revenue normalisation is taking longer than expected (in-line with our bearish thesis), especially as exports have also failed to cheer.

Click on the attachment to read the full report:

Motilal Oswal Cummins India Q4FY21 Result Update.pdf

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