Cummins India Reports Strong Q2 Results, Driven by Robust Domestic Sales and Profit Growth

Key Takeaways from the Financial Performance

• CIL reported total quarterly revenue of ₹2,448 crore, a 31% increase year-over-year, with domestic sales rising 47%.
• All applicable products are certified for CPCB IV+ emission norms, positioning CIL well for future regulatory requirements.
• Cummins India is cautiously optimistic about domestic demand and export recovery, supported by a diverse portfolio and strong balance sheet.

Total sales for the quarter reached ₹2,448 crore, representing a 31% year-over-year increase and an 8% rise from the previous quarter. This growth was largely fuelled by strong domestic sales, which rose 47% from last year, totalling ₹2,008 crore. Export sales, however, faced a 13% dip year-over-year, totalling ₹440 crore, but showed a 13% recovery from the previous quarter.

Profit before tax (PBT) increased by 39% year-over-year, reaching ₹594 crore, and profit after tax (PAT) rose 37% to ₹451 crore compared to the same period last year. Cummins India attributes this growth to the resilience of the Indian economy, supported by robust GST collections, a positive Index of Industrial Production (IIP), and a stable Purchasing Managers' Index (PMI), indicating solid economic fundamentals.

Cummins India Managing Director, Shveta Arya, highlighted the company’s preparedness for the CPCB IV+ emission standards, which came into effect on July 1, 2024, and noted the certification of compliant products well in advance. The company also emphasised its position to leverage ongoing infrastructure growth and PLI-led capital expenditure as part of its profitable growth strategy, despite global trade uncertainties and geopolitical tensions.

About Cummins India Limited:

Cummins India Limited, the leading provider of power solutions in India, was established in 1962 and headquartered in Pune. The products range from deep power generation services into after-sales services and even export services. And with five manufacturing plants, over 480 customer touchpoints, and a dedicated team of more than 3,000 employees, it continues to make a commitment to supporting customers with advanced solutions and wide-reaching distribution and service networks throughout the country and region.

Key Takeaways from Inox India Contract:

• INOX India wins contract for the world’s largest Liquid Air Energy Storage (LAES) project in Manchester, UK.
• The company will supply 690kl vacuum-insulated cryogenic tanks for the facility.
• This marks INOX India’s first liquid air energy storage project.
• The Carrington facility will provide 300 MWh storage and 50 MW output to balance renewable energy.

This marks INOX India’s first involvement in liquid air energy storage and sees the company producing the largest shop-fabricated vacuum insulated industrial gas tanks ever created by INOX India. 

The project will play a key role in advancing the UK's clean energy infrastructure and support the country’s transition to Net Zero.

The Carrington facility, once operational in 2026, will have a storage capacity of 300 MWh and an output power of 50 MW per hour for six hours, offering a reliable solution for balancing renewable energy supply and demand.

About INOX India Limited:

INOX India Limited (INOXCVA) is a leading global provider of custom cryogenic solutions, serving customers across the clean energy sector, including industries such as industrial gases, LNG, hydrogen, and cryoscience. For over 30 years, the company has offered a range of products, including standard cryogenic tanks, beverage kegs, and bespoke equipment, as well as large-scale turnkey projects. These solutions are used in various industries, including energy, steel, healthcare, chemicals, aerospace, pharmaceuticals, and construction. Additionally, INOXCVA manufactures cryogenic equipment for global scientific research. In Fiscal 2022, it was the largest exporter of cryogenic tanks from India, according to a CRISIL report.

Key Takeaways from Himatsingka Seide’s Investment:

• Himatsingka Seide invests Rs 5.725 crores in AMP Energy C&I Twenty Four Pvt Ltd.
• Acquired 57,24,900 equity shares (Rs 10 each), increasing shareholding to 47.30%.
• The investment follows a previous acquisition of 2,600 shares in May 2024.
• Aims to secure sustainable energy for Himatsingka's operations and reduce its carbon footprint.

The company has acquired 57,24,900 equity shares of Rs 10 each in AMP Energy, bringing its total shareholding to 47.30%. This investment follows a previous acquisition of 2,600 shares in May 2024.

The investment aims to secure sustainable energy for Himatsingka’s operations and contribute to reducing the company’s carbon footprint. The purchase aligns with the Group Captive Power Scheme. 

About Himatsingka Seide Limited:

Himatsingka Seide Limited is a leading global textile company, specialising in the design, manufacturing, and distribution of a wide range of textile products. With state-of-the-art facilities for bedding, bath products, drapery, upholstery fabrics, and fine-count cotton yarn, Himatsingka is one of the largest players in the industry. The company operates in over 30 countries, offering a portfolio of owned and licensed brands. Himatsingka’s success is driven by a workforce of over 10,000 dedicated associates, supported by advanced technology and a commitment to sustainability, including zero-liquid discharge (ZLD) facilities and near-total water recovery. Their vision is to deliver excellence and innovation across all business segments.

Key Takeaways from the Partnership

• MGL and IBC US are establishing a gigafactory in Bangalore to manufacture prismatic NMC Li-ion cells, aiming to address India’s battery cell needs for mobility and storage applications.
• MGL is set to acquire at least 40% equity in IBC India, facilitating the development of this clean energy infrastructure.
• The facility will initially produce prismatic NMC Li-ion cells, offering Indian OEMs a sustainable, local alternative and reducing reliance on imports.

This collaboration will lead to the setup of a gigafactory in Bangalore, focused on producing prismatic NMC (nickel manganese cobalt) Li-ion cells tailored for the Indian market.

IBC US brings to the partnership extensive expertise in Li-ion cell development with a pilot facility in Seoul and relevant certifications such as UN 38.3, BIS, and AIS for their prismatic NMC cells. This venture aligns with MGL’s goal of supporting clean energy alternatives within India. The new manufacturing facility will address local demand for reliable, high-performance Li-ion battery cells for mobility and battery storage applications, reducing India’s dependency on imported cells.

MGL’s Managing Director, Ashu Shinghal, highlighted that this investment reflects MGL’s commitment to cleaner energy solutions, aligning with government initiatives like “Make in India.” The facility will help enhance local competitiveness by providing OEMs and customers with quality, locally sourced cells designed to withstand India’s environmental conditions. Meanwhile, IBC CEO Priyadarshi Panda emphasised the strategic importance of achieving energy independence through local manufacturing, which will also reduce India’s foreign exchange outflow significantly. 

About Mahanagar Gas Limited

Mahanagar Gas Ltd. is a city gas distribution (CGD) company providing natural gas to Mumbai, surrounding areas, and Raigad District in Maharashtra. It supplies piped natural gas (PNG) for domestic, industrial, and commercial use through a 5,900+ km pipeline network. Currently, the company serves around 12.5 lakh domestic customers and has the capacity to connect up to 16 lakh, along with approximately 4,200 commercial and industrial clients.