The Board of Directors of Cummins India Limited, at their meeting held recently, took on record the audited financial results for the quarter and year ended March 31, 2020.
Q4FY’20 Performance Highlights
Revenue for the quarter at Rs. 1,032 Cr, declined by 21% as compared to Rs. 1,314 Cr recorded in the same quarter last year and by 28% compared to Rs. 1,428 Cr recorded in the preceding quarter. The de-growth was on account of muted order bookings due to economic slowdown accentuated by Covid-19 related lockdown which impacted revenue for the quarter. Without Covid-19 lockdown impact, revenue decline is 7% and 14% respectively.
Domestic sales in the current quarter at Rs. 775 Cr declined by 22% as compared to Rs. 992 Cr recorded during the same quarter last year and declined by 27% as compared to Rs. 1,058 Cr recorded during preceding quarter.
Exports for the current quarter at Rs. 257 Cr declined 20% as compared to Rs. 322 Cr recorded in the same quarter last year and lower by 31% as compared to Rs. 370 Cr recorded in the preceding quarter.
Profit before tax (excluding exceptional items) was recorded at Rs. 121 Cr, which is 42% lower as compared to Rs. 209 Cr recorded during the same quarter last year and 52% lower as compared to Rs. 254 Cr recorded during the preceding quarter.
FY’20 Performance Highlights
Revenue for the year ended March 31, 2020 at Rs. 5,062 Cr declined 8% over the sales of Rs. 5,526 Cr recorded during same period last year.
Domestic sales for the year ended March 31, 2020 at Rs. 3,771 Cr were lower by 3% over the sale of Rs. 3,873 recorded during same period last year. Excluding the impact of lockdown, CIL would have achieved growth of 2% over last year.
Exports sales for the year ended March 31, 2020 at Rs. 1,291 Cr declined 22% over the export sales of Rs.1,652 Cr recorded during last year.
Profit before tax (excluding exceptional items) was recorded at Rs. 779 Cr is 24% lower as compared to Rs. 1,030Cr recorded during last year.
Ashwath Ram, Managing Director, Cummins India Limited, said: "Revenue and EBITDA for the quarter was impacted due to lockdown. Excluding the Covid-19 impact, the revenue would have been at Rs.1,220 Cr. Since Q2 of FY19 we have been experiencing a slowing economy which led to a flat/negative growth rate and Covid-19 related lockdown accentuated revenue growth rate.
Export markets have continued to display softness in last few quarters, arising from global economic challenges. During this quarter also, we experienced decline in certain markets where conditions deteriorated further due to Covid-19."
Given the significant impact the pandemic will have on demand across various sectors in the next quarter and beyond, we are well-prepared to manage the downturn with a strong balance sheet and deployment of proactive cost optimization measures. We will continue to monitor market conditions and adjust our plans accordingly."
Amidst the unprecedented Covid-19 pandemic, the health and safety of our employees and the communities in which we operate is our top priority. Our teams have initiated number of measures to support our customers, dealers and suppliers. We are confident that we will be able to tide over this unprecedented crisis and come out stronger."
FY 2020-21 Outlook: "As Company’s operations gradually scale-up post relaxation of lockdown and continue to fight threat of Covid-19, we remained focused on the safety of our employees, serving our customers and supporting all stakeholders. Considering the economic uncertainty associated with Covid-19 pandemic, the company is not providing revenue guidance for next year at this time. While customers have resumed operations partially, the company expects a significant impact to its next quarter results due to nationwide lockdown and consequential impact on economy," Ram said.