- Shares of Cummins India rose 10% to a 52-week high after strong Q4 results
- Q4 EBITDA was Rs 642 crore, beating estimates by nearly Rs 100 crore
- EBITDA margins held steady at 21.3%, showing genuine operating leverage
Shares of Cummins India surged as much as 10% to hit a 52-week high mark on Wednesday after the engine and power solutions maker posted a blowout fourth-quarter operating profit that came in 18% ahead of Bloomberg consensus estimates, triggering one of the stock's sharpest single-session moves in recent memory.
EBITDA for the quarter came in at Rs 642 crore, comfortably beating the Bloomberg estimate of Rs 543.6 crore — an outperformance of nearly Rs 100 crore that underscored both strong volume growth and tighter-than-expected cost control. EBITDA margins held at 21.3%, fractionally above the 21.2% recorded a year earlier, suggesting the operating leverage was genuine rather than a one-quarter aberration.
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Revenue also topped estimates, rising 22.6% year-on-year to Rs 3,012 crore against a Bloomberg forecast of Rs 2,879.5 crore — a beat of approximately 4.6%. The top-line surprise added further conviction to the operating outperformance, pointing to broad-based demand strength across Cummins India's industrial and infrastructure verticals.
Net profit grew 27% year-on-year to Rs 202 crore, up from Rs 159 crore in the same quarter last year. The board declared a final dividend of Rs 46 per share.
The scale of the EBITDA beat is likely to prompt meaningful upward earnings revisions across the Street, and analysts will be closely watching management commentary on order pipelines and export momentum when the earnings call gets under way.
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