Cummins India Limited Results for the quarter and year ended March 31, 2022

Pune, India: Cummins India Limited (NSE: CUMMINSIND) The Board of Directors of Cummins India Limited (CIL), at their meeting held today, reviewed, and approved the financial results for the quarter and year ended March 31, 2022.

Ashwath Ram, Managing Director, Cummins India Limited, said:

Post-Covid waves 1 and 2, the Indian economy rebounded strongly due to various factors like mass vaccination, proactive fiscal policy measures directed towards ease of doing business, Make in India, etc. Monetary policy remained accommodating with a soft interest rate scenario till recent times. Besides, pent-up demand was broad-based across various segments of the economy. We believe that despite supply chain disruptions, high commodity costs, and geopolitical issues, India is on the path to sustained economic recovery considering strong domestic demand and robust export performance. Economic recovery is visible with record monthly GST collections over ₹ 1 Lakh Cr. For most of the year; increased spending on discretionary items; Capex, primarily private Capex cycle is slowly coming back. An elevated level of inflation and associated actions to contain inflation from the Government and the RBI to raise interest rates may to some extent, impact demand in the near to medium term.

I am pleased to announce that Cummins India Limited, its associate and JV companies, Cummins Generator Technologies India Pvt Limited, and Valvoline Cummins Private Limited, posted record annual revenue in FY'22. This record revenue performance was possible due to focus and dedicated efforts of our employees, supply chain partners, and continued strong support from Cummins Inc. To help us meet customer demand. I am delighted that our teams delivered record revenue despite significant supply chain disruptions. We continue to leverage our globally integrated supply chain to address the supply challenges, and our endeavor remains to sustain profitable growth in this challenging inflationary business environment.

Future Outlook:

We expect continued growth momentum in the economy, and we are also hopeful that the lagging segments will rebound in FY'23. We anticipate that India's growth momentum will sustain with a strong push from the Government through policy interventions and infrastructure spending coupled with an improvement in the supply chain situation. However, world trade continues to be impacted by Covid-19, and its variants are still active in some parts of the world alongside geopolitical tensions and other challenges. Inflationary impact, especially commodities, continues to be a challenge, and we continue to take tactical pricing and productivity actions to mitigate the same.

Given the uncertainty in the current business environment due to geopolitical situation and supply chain challenges, the company is not providing full-year revenue guidance for FY'23.

About Cummins India Limited

Cummins India Limited, part of the Cummins Group in India, is headquartered in Pune since 1962 and is the country's leading manufacturer of diesel and natural gas engines for power generation, industrial and automotive markets. Cummins India Limited has a countrywide network of 20 dealerships with over 450 service points that provides products, services, and aftermarket solutions for uptime of Cummins equipment and engines to customers in India, Nepal, and Bhutan.

About Cummins Group in India:

Cummins in India, a power leader, is a group of complementary business units that design, manufacture, distribute, and service engines and related technologies, including fuel systems, air handling, filtration, emission solutions, and electrical power generation systems. Its technology and pioneering initiatives are bringing innovative solutions and dependable services at the best possible value to users across the country. Its high-performance outlook is based on customer focus, integrity, and capability of its people. Part of the $19.8 billion, Cummins Inc. USA. Cummins in India is a Group of seven legal entities across 200 locations in the country with a combined turnover of ₹17,000 crores in 2021 and employing over 10,000 individuals. Learn more at cummins.com.