Despite the recent surge in commodity prices making it difficult to maintain margins, Cummins India Ltd. will not be at their mercy, said Managing Director Ashwath Ram.
The company raised its product prices when commodity costs rose and maintained them when prices fell. It is working to control costs and improve efficiency to achieve better margins. Following the announcement of its fourth-quarter results, brokers are cautiously optimistic about margin sustainability.
Cummins India reported a 54.4% increase in net profit in the fourth quarter of fiscal 2024 on Thursday, leading Nomura and Citi to upgrade their ratings for the company.