The Board of Directors of Cummins India Limited took on record the unaudited financial results for the quarter ended December 31, 2015 in their meeting held on February 2, 2016.
Net sales of the Company for the quarter ended December 31, 2015 at Rs1,116 crore increased six percent as compared to Rs1,057 crore recorded in the same period last year and decreased four percent as compared to Rs1,116 crore recorded in the preceding quarter.
Net sales for the nine months ended December 31, 2015 at Rs3,565 crore increased 11 per cent compared to Rs3,207 crore recorded in the same period last year. Domestic sales grew whereas exports declined both year on year as well as sequentially.
Net profit before tax at Rs207 crore remained flat compared to the same period last year but dropped 14 percent compared to Rs 241 crore recorded in the preceding quarter. The current quarter operating results have been negatively impacted by a onetime charge of Rs 16 crore on account of an excess inventory provision taken in accordance with a consistent time based policy for certain slow moving inventory items based on the demand projections for those products.
It is however expected that these items will see demand in the next two year timeframe. Net profit before tax for the nine months ended December 31, 2015 decreased one percent to Rs705 crore as compared to Rs715 crore in the same period last year.
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