(Reuters) -Cummins India reported a 30.5% rise in first-quarter profit on Thursday, helped by robust demand for its engines and power generators.
The company, a unit of U.S.-based truck engine maker Cummins Inc, said its consolidated profit after tax rose to 6.04 billion rupees ($69.05 million) from 4.63 billion rupees a year ago.
Demand for power generation equipment typically rises in the summer due to increased electricity consumption from cooling systems and a higher risk of grid overloads or outages, which helps companies like Cummins India.
Despite an early onset of monsoons across India this year, several regions still experienced heat waves. A study found in May that nearly 60% of Indian districts face a “high to very high” risk from extreme heat, with rising night-time temperatures and humidity intensifying.
The company had noted demand across the board, including the generator business, in its last earnings call in May.
Overall sales rose 25.7% on-year to 28.59 billion rupees in the June quarter.
Sales of engines and power generators accounted for the majority of the company’s revenue, according to their latest annual report.
Cummins also recorded a one-off gain of 125.9 million rupees in the quarter from the sale of its stake in a subsidiary.
Total expenses rose by 23.4% to 23.34 billion rupees, primarily driven by a 34.2% surge in raw material costs.
Parent Cummins Inc reported second-quarter revenue above Wall Street estimates on Tuesday, helped by strong demand for its power generation systems.
Cummins India’s shares closed up 1.1% ahead of results.
($1 = 87.4740 Indian rupees)
(Reporting by Meenakshi Maidas in Bengaluru)
