Cummins India (500480) Q4 98/99 earnings summary

Executive summary

• FY1998-99 sales turnover fell 12.7% to Rs 6,480 million and net profit declined to Rs 747.91 million; PBT as a share of sales rose to 16.5% from 15.5% on cost-reduction and export initiatives.

• Output was 7,710 engines and 39 generating sets; the final quarter showed marginal recovery after a prolonged slowdown.

Financial highlights

• Net sales were Rs 6,451.44 million versus Rs 7,405.78 million; total income was Rs 6,617.48 million versus Rs 7,547.24 million.

• PBT was Rs 1,069.36 million versus Rs 1,151.68 million; net profit after tax was Rs 747.91 million versus Rs 822.77 million.

• Profit before interest, depreciation and tax was Rs 1,325.71 million versus Rs 1,420.87 million.

• Proposed equity dividend was 40% of Rs 396 million share capital, totaling Rs 158.4 million.

Outlook and guidance

• FY1999-2000 outlook was cautious amid political instability and lower-than-anticipated infrastructure investment; cost reduction, indigenisation and export initiatives were positioned to address the environment.

• Management aimed to capitalize on competitive strengths as the economy expands; initiatives to reduce costs and broaden export products were to continue.