Cummins India, the country’s leading producer of diesel and natural gas engines, will maintain a positive outlook for domestic growth despite an uncertain demand trend in the export market, says Managing Director Shveta Arya.
Arya explained that the export market continues to show a mixed picture, with some regions recovering while others still face unclear demand trends. “For exports, the end market demand is still not showing a clear trend. We have been focusing a lot on improving our channel presence, making sure that products are available, and ensuring reach through our channel in different markets,” she said.
She added that despite these efforts, clear demand trends are yet to emerge across all markets. “So, our efforts are continuing in that direction, yet we don’t see clear demand trends from each of the different markets that we operate. So, it’s a mixed bag in terms of anticipation from exports in the coming financial year,” Arya stated.
On the domestic front, Cummins India expects strong growth in FY25 and FY26, driven by demand in the power generation and industrial segments, as well as sustained growth in the aftermarket business. “So, for both years we anticipate double-digit growth,” Arya said.
Regarding the company’s order pipeline, Arya mentioned that while there is a healthy order book for the next few months, visibility remains short-term.
Addressing the impact of battery cost declines on the power backup space, Arya stated that batteries could become a viable solution in the long term. “The way we see it is that our end customers will probably have different energy sources like grid, solar panels, and battery. We do see a place for gen-sets (generator set) even in that scenario because, for a longer duration of time, providing reliable power is what gen-sets can do today,” she explained.
“We need to see battery prices falling even further, and every day there is research happening in battery technology, battery prices, and different chemistries available. As we see it today, we see gen-sets being a part of the overall energy solution for our customers,” Arya said.
Meanwhile, this power solutions technology provider reported strong financial results for October-December 2024 (Q3FY25). Standalone revenue rose 21.8% year-on-year (YoY) to ₹3,086 crore, while net profit grew 13% to ₹514 crore. earnings before interest, taxes, depreciation and amortisation (EBITDA) increased 11.5% to ₹600 crore, though margins declined, with gross margin at 34.77% (vs. 37.04%) and EBITDA margin at 19.44% (vs. 21.23%).
The market capitalisation of Cummins India stands at approximately ₹74,878.65 crore, with its shares gaining close to 2% in the past year.
