Q3 Blowout! 900% Dividend, Company Reports 22% Revenue Growth & Shares Jump 5%; Are You Invested?

Cummins India, one of the leading large-cap companies specializing in diesel and natural gas manufacturing, has reported impressive Q3 results with double-digit growth. The firm recorded a 12% year-on-year increase in net profit, due to strong operational performance, while revenue surged by 22% YoY.

Cummins India Dividend

Along with the Q3 result, Cummins India has announced the declaration of a dividend of Rs. 18 per share for its investors. The company in a latest Exchange filing said, "The Board of Directors have approved and declared an Interim Dividend of Rs. 18/- per equity share i.e. at the rate of 900%, on 277,200,000 equity shares (Face Value Rs. 2/- each) for the Financial Year 2024-25. Further, in terms of Regulation 42 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, the Board has fixed Friday, February 14, 2025, as the Record Date for determining the entitlement of Members for the said interim dividend. The interim dividend will be paid by March 03, 2025."

Cummins India Shares Surge After Strong Q3 Performance

Cummins India shares opened at Rs.3,067, rising 5% from the previous close of Rs.2,921, following the company's 22% revenue growth and solid financial results for the quarter ending December 2024. As of February 6, 2025, the company's market capitalization stands at Rs.81.8K crore. Over the past 30 days, Cummins shares have declined 7% and are down 8.6% year-to-date. However, over the past 12 months, the stock has gained 23%, and long-term investors have seen a 431% return over five years.

Cummins India Q3 FY24 Results

Cummins India reported a net profit of ₹455 crore for the third quarter of FY24, reflecting a steady financial performance. EBITDA increased by 11.5% YoY, rising to Rs.600 crore from Rs.538 crore in Q3 FY23. However, despite higher revenue, the company's EBITDA margin contracted to 19.4%, down from 21.2% in the previous year's corresponding quarter, indicating rising costs or pricing pressures. The company's standalone revenue saw a robust 21.8% growth, reaching ₹3,086 crore, compared to ₹2,534 crore in the same quarter of the previous fiscal.

About Cummins India

Established in 1962, Cummins India is involved in the manufacture of natural gas and diesel engines, power generation systems, and related technologies. It is a subsidiary of Cummins Inc., USA, and operates across multiple sectors, including automotive, industrial, marine, and construction equipment, supplying high-performance engines that meet global efficiency and emission standards.