Cummins India aims for double-digit revenue growth in FY25
Ajay Patil, CFO of Cummins India highlighted the rapid growth of the data center segment. Data centers are expanding quickly due to the increasing digitisation of various sectors like supply chain, e-commerce, banking, and financial services.
Cummins India, manufacturer of diesel and natural gas engines, headquartered in Pune, is expecting double-digit revenue growth in FY25.
Ajay Patil, CFO of Cummins India says the company has not provided specific guidance on profit margins because of uncertainties in the market, especially concerning the prices of commodities like copper and aluminum. There are also disruptions in the global supply chain.
Macquarie is bullish on the stock with an outperform rating and a target price of ₹3,975. The stock has been buzzing this year with more than 90% surge so far.
According to the brokerage firm, key focus areas have been the impact of CPCB IV transition, distribution and data centre growth opportunities, and export softness.
The CPCB IV norms are strict environmental regulations set by the Central Pollution Control Board for diesel generators.
These norms aim to reduce harmful pollutants like Nitrogen Oxides, Carbon Monoxide, and particulate matter.
Patil noted that there has been strong demand for CPCB IV products throughout the last fiscal year. Customers had the option to buy older CPCB II products, but many chose the newer, more environmentally friendly CPCB IV products.
Cummins India
Regarding pricing, Patil explained that the newer CPCB IV Plus products are more advanced and therefore more expensive.
The price has been acceptable to customers so far, reflecting the value these products offer.
However, the market will determine the final price over the next two to three quarters as more players introduce their products.
Patil also highlighted the rapid growth of the data center segment. Data centers are expanding quickly due to the increasing digitisation of various sectors like supply chain, e-commerce, banking, and financial services.
Patil believes this growth will continue for many years.
Cummins India is well-positioned to benefit from this trend because of the reliable products and technologies they offer. The company expects data centers to remain one of their fastest-growing markets.
The company has a market capitalisation of ₹1,02,392.14 crore. Its shares have risen 102% over the last year.
Ajay Patil, CFO of Cummins India says the company has not provided specific guidance on profit margins because of uncertainties in the market, especially concerning the prices of commodities like copper and aluminum. There are also disruptions in the global supply chain.
Macquarie is bullish on the stock with an outperform rating and a target price of ₹3,975. The stock has been buzzing this year with more than 90% surge so far.
According to the brokerage firm, key focus areas have been the impact of CPCB IV transition, distribution and data centre growth opportunities, and export softness.
The CPCB IV norms are strict environmental regulations set by the Central Pollution Control Board for diesel generators.
These norms aim to reduce harmful pollutants like Nitrogen Oxides, Carbon Monoxide, and particulate matter.
Patil noted that there has been strong demand for CPCB IV products throughout the last fiscal year. Customers had the option to buy older CPCB II products, but many chose the newer, more environmentally friendly CPCB IV products.
Cummins India
was ready with these products on time, meeting the original deadline. Patil expects this demand to continue as the company transitions to CPCB IV Plus norms from July 1st.
Regarding pricing, Patil explained that the newer CPCB IV Plus products are more advanced and therefore more expensive.
The price has been acceptable to customers so far, reflecting the value these products offer.
However, the market will determine the final price over the next two to three quarters as more players introduce their products.
Patil also highlighted the rapid growth of the data center segment. Data centers are expanding quickly due to the increasing digitisation of various sectors like supply chain, e-commerce, banking, and financial services.
Patil believes this growth will continue for many years.
Cummins India is well-positioned to benefit from this trend because of the reliable products and technologies they offer. The company expects data centers to remain one of their fastest-growing markets.
The company has a market capitalisation of ₹1,02,392.14 crore. Its shares have risen 102% over the last year.
(Edited by : Shweta Mungre)
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