Cummins Q4 net profit declines 7% to ₹521 crore, beats estimates; declares dividend of ₹33.50

Power solutions technology provider Cummins India Ltd on Wednesday (May 28) reported a 7.2% year-on-year (YoY) decline in net profit at ₹521.37 crore for the fourth quarter that ended on March 31, 2025.

In the corresponding quarter of the previous fiscal, Cummins India posted a net profit of ₹561.52 crore. The CNBC-TV18 poll had predicted a profit of ₹483.6 crore for the quarter under review.

The company's revenue from operations increased 6.1% to ₹2,457 crore as against ₹2,316.15 crore in the corresponding period of the preceding fiscal. The CNBC-TV18 poll had predicted revenue of ₹2,715 crore for the quarter under review.

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At the operating level, EBITDA dipped 4.5% to ₹519.9 crore in the fourth quarter of this fiscal over ₹544.27 crore in the corresponding period in the previous fiscal. The CNBC-TV18 poll had predicted an EBITDA of ₹512.93 crore for the quarter under review.

EBITDA margin stood at 21.16% in the reporting quarter as compared to 23.50% in the corresponding period in the previous fiscal. The CNBC-TV18 poll had predicted a margin of 18.89% for the quarter under review.

Cummins India reported a 15% year-on-year growth in total standalone sales at ₹10,166 crore for the financial year ended March 31, 2025. Domestic sales grew 18% to ₹8,395 crore, while exports rose 6% to ₹1,771 crore. Profit before tax (PBT) for the year stood at ₹2,496 crore, up 16% compared to the previous fiscal.

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For the fourth quarter of FY25, total sales came in at ₹2,414 crore, marking a 6% increase year-on-year but a 21% decline sequentially. Domestic sales were marginally higher by 1% year-on-year at ₹1,935 crore, but dropped 25% compared to the December quarter.

Export sales surged 39% year-on-year to ₹479 crore and were up 3% sequentially. The company reported a Q4 PBT of ₹681 crore, down 3% year-on-year but 2% higher than the previous quarter.

The Board has recommended a final dividend of ₹33.50 per equity share (1,675%) for FY2024- 25. This is in addition to the interim dividend of ₹18 per share declared on February 5, 2025. The final dividend is subject to shareholder approval at the upcoming AGM and is scheduled to be paid on or around September 2, 2025.

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The results came after the close of the market hours. Shares of Cummins India Ltd ended at ₹2,977.35, up by ₹3.70, or 0.12% on the BSE.