Engines and related parts maker Cummins India Ltd on Wednesday reported a 65 per cent decline in consolidated profit after tax (PAT) at Rs 53.02 crore in the first quarter ended June 30, impacted by the coronavirus pandemic.
The company had posted a PAT of Rs 152.56 crore in the same period last fiscal, Cummins India Ltd said in a regulatory filing.
Consolidated sales from operations during the quarter under review stood at Rs 488.74 crore as compared with Rs 1,325.11 crore in the year-ago period, it added.
Domestic sales in the first quarter stood at Rs 358 crore, down 64 per cent from Rs 990 crore in the same quarter last year.
Export revenue declined 61 per cent to Rs 126 crore as against Rs 326 crore in the year-ago period, the company said in a statement.
Commenting on the performance, Cummins India Ltd Managing Director Ashwath Ram said, “Nationwide lockdown for most of the quarter and other containment/precautionary measures have resulted in drop in demand in India and around the world as well as unprecedented disruptions to the supply chain and dispatches to customers.”
The company said it resumed partial operations from the second week of May 2020 in a gradual manner in compliance with guidelines issued by state and local government authorities.
Anticipating potential disruptions, it took “some proactive actions to minimize supply chain disruptions and stabilize operations by end of June”.
“As the company operations were significantly impacted in April and May, operations for the quarter to that extent may be viewed accordingly,” it said.
Cummins India said it continues to take actions to prudently manage cost as well as to conserve cash. It has a strong balance sheet and believes it can manage the ongoing business slowdown effectively.
On the outlook, the company said, it “expects gradual recovery of demand in coming months. However, there remains significant uncertainty around how Covid-19 will impact market demand as well as customer and supplier operations”.
“Due to this uncertainty the company is not providing a full year revenue guidance for FY2021,” it added.