Cummins India Q2 net down

PUNE: The frequent interest rate hikes, coupled with the sharp rises in commodity prices has led to a drop in the net profit of engine manufacturer Cummins India despite a marginal rise in total sales during the quarter ended September 30, 2011.

While net profit for the second quarter is down to Rs. 128.58 crore (Rs. 167.80 crore), net sales have risen marginally to Rs. 1070 crore (Rs. 1068 crore). Net sales for the first half have also registered a 5.8% rise, Rs. 2092 crore (Rs. 1978 crore), net profit has fallen to Rs. 305.74 crore (Rs. 308.12 crore), according to a company statement.

The statement quoted Cummins India chairman and managing director, Anant J Talaulicar, as saying that the bottom line has been impacted by the frequent rate hikes which have impacted demand from the power generation sector. He added that the rise in the top line has been due to higher exports while domestic sales in the second quarter are down by 5% as compared to a year ago.