We have had pretty robust margins: Rajiv Batra, CFO, Cummins India Ltd.

Rajiv Batra, CFO, Cummins India Ltd. in an interview with ET Now talks about the upcoming projects and the company's margins.

You have a mega side project coming up in Phaltan. How much have you invested there and when can we expect the facility over there to get commissioned?

Mega side is where all of Cummins future expansions in India are slated to be over the next 3 to 5 years. We have 4 plants coming between December and February. The mega side is going to be formally inaugurated on 14th of January. So that is really going to be the future for Cummins in India. Investments again would vary. We have one of our joint ventures Tata Cummins, they would be investing in phases up to about 900 crores in that facility and then there are other plans based on what we need which will come out overtime.

Once this gets commissioned, what kind of contribution do you expect this facility to have on the top line and the bottom line and by when?

It is phases and very difficult to predict based on business and it is over next 3 to 5 years. So I do not have a firm answer for you.

Just getting back to your quarterly performance, your margins had dropped sequentially. Do you see them dropping further or was it a one time aberration that we saw last quarter?

We have had pretty robust margins. Going into the future, the only issue that you may encounter is commodities. Commodities had over the last couple of quarters gone up much significantly and however for the moment, they are reasonably preserved but if there are sharp escalations, I do not think we will have actions in place to counter all of that. So that is really what we need to watch out for.