(Reuters) -Cummins India reported a lower fourth-quarter profit on Wednesday, as ballooning costs offset the benefit of price hikes it took for some of its generator sets.
The company, a unit of U.S. truck engine maker Cummins Inc, said its consolidated profit after tax came in at 5.30 billion rupees ($62.1 million), 1.7% lower than 5.39 billion rupees a year ago.
The company’s sales increased 6.4% to 24.14 billion rupees, which analysts attributed to price hikes during the quarter, particularly for its CPCB 4+ generator sets.
The CPCB 4+ generator sets comply with the latest emission standards set by India’s federal pollution control board, and make up about 40% of sales.
Cummins India’s total expenses rose 9.2% to 19.88 billion rupees, mainly due to a 16.8% increase in raw material costs.
The company in February said that demand growth is expected to continue supported by government capital expenditure and demand across power cars, tower cars in railways and the construction sectors.
Meanwhile, parent Cummins Inc withdrew its annual forecast, joining other vehicle manufacturers that are reassessing expectations as the industry grapples with the mounting uncertainty generated by U.S. President Donald Trump’s tariffs.
Shares of Cummins India closed flat ahead of results on Wednesday.
($1 = 85.3850 Indian rupees)
(Reporting by Meenakshi Maidas in Bengaluru; Editing by Varun H K and Leroy Leo)
