Delivery volumes for the engine maker were up five times to 4.65 lakh shares, although the stock price gained only about 7 per cent in the last fortnight. This gain was partly on account of robust results for FY09. Net sales was up by 33 per cent y-o-y to Rs 3,528 crore and net profit rose by 37 per cent to Rs 445 crore. Operating profit margins moved up 94 basis points to 15 per cent. Cummins India is the leader in diesel and gas engines for power generation in the industrial and automotive markets. Its products are used not only for power generation, but also in construction, mining, marine, locomotive and fire- fighting sectors. In April, the Mumbai High Court approved the company’s decision to merge its subsidiaries, namely Cummins Sales and Service India and Cummins Auto Sales, with itself, effective from April 1, 2008. At the current market price, the stock is trading at 16x its FY10 earnings.
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