Cummins India Limited — Q3 FY25
Cummins India delivered a strong Q3 FY25 with revenue of INR 3,041 crores, up 22% YoY, driven by robust domestic demand across Power Gen, Industrial, and Distribution segments.
bullish
high
✓ Verified against BSE filing
Claim Ledger
Did management answer the analysts?
Every material analyst question, graded on whether management actually answered it — with the verbatim exchange and quantitative claims checked against filed numbers.
50%Questions answered4Evaded / deflected12Questions auditedContradictedNumbers vs filing
Partial answer
High priority
Pricing trends in domestic Power Gen and whether BS-VI pricing has settled.
Asked by Mohit Pandey, Macquarie Capital
Acknowledged the question but gave a vague timeline without specific pricing data.
no specific pricing data givendeferred to future quarters
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Question
If you could please comment on pricing trends at the portfolio level, and now that more than six months have passed with full-fledged adoption of BS- VI, if you think pricing levels have more or less settled.
Shveta Arya, Managing Director
From a Power Gen domestic perspective, we believe that pricing will take at least another one or two quarters to settle in the market.
Answered
High priority
Breakup of domestic Power Gen by Low, Medium, High HP.
Asked by Mohit Pandey, Macquarie Capital
Provided exact revenue figures for each HP segment as requested.
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Question
Typically you give breakup across Low HP, Medium HP, High HP for domestic. If you could please share that for this quarter.
Shveta Arya, Managing Director
For this quarter, for Power Gen Low Horsepower, we recorded sales of INR 82 crores. For the Mid-range, we recorded sales of INR 196 crores. For the Heavy Duty, we recorded sales of INR 99 crores, and for the High Horsepower, we recorded sales of INR 893 crores in this quarter.
Partial answer
Medium priority
Rationale and valuation for sale of wholly owned subsidiary.
Asked by Mohit Pandey, Macquarie Capital
Explained rationale but declined to share valuation details.
valuation not disclosedgeneric rationale
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Question
On the sale of the wholly owned subsidiary today, if you could give more color around the rationale and how was the valuation for that arrived at.
Shveta Arya, Managing Director
So this wholly owned subsidiary is actually a dealership entity... strategically, what we have seen is that having independent dealers around the country really helps us serve our customers well.
Answered
High priority
Whether Cummins has cut prices for its own product portfolio since July.
Asked by Parikshit Kandpal, HDFC Securities
Clearly stated that they have maintained pricing.
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Question
Since these products were introduced by us in July, so from that point until now, so have you seen any cut in prices for your own product portfolio?
Shveta Arya, Managing Director
As far as we have been able to maintain price until now.
Evasive
High priority
Pricing differential between Cummins and peers, and total cost of ownership.
Asked by Parikshit Kandpal, HDFC Securities
Avoided giving any specific pricing differential despite repeated follow-ups.
no number givenreframed as dynamic
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Question
How much is the pricing differential between our and the universe and whether the total cost of ownership still gives better value to customers?
Shveta Arya, Managing Director
It is quite dynamic, very different across nodes, very different across segments. It's very difficult to give you one single answer for this.
Evasive
Medium priority
Portion of parent's $200 million CapEx for India coming to listed entity.
Asked by Parikshit Kandpal, HDFC Securities
Did not quantify the portion for the listed entity.
no specific allocation givendeferred to evaluation
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Question
The parent has announced $200 million CapEx for India... what portion of that will come to the listed entity?
Shveta Arya, Managing Director
It will definitely come to us as well based on our needs... that's under evaluation at this point in time.
Partial answer
High priority
Whether data center orders drove the High HP revenue delta of INR 300-400 crores.
Asked by Jonas Bhutta, Birla Mutual Fund
Confirmed data centers contributed but did not quantify the share.
no attribution split given
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Question
Is it fair to say that large part of this delta is driven by the data center order execution?
Shveta Arya, Managing Director
This is driven by a few things. Definitely, there's data center growth. There is also growth in mission-critical power requirements... and there is better execution as well at our end.
Evasive
High priority
Visibility of data center orders sustaining delivery levels for next 3-4 quarters.
Asked by Jonas Bhutta, Birla Mutual Fund
Refused to provide visibility beyond the near term.
no forward guidancedeferred to uncertainty
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Question
Does the current order book on the data center projects give you enough visibility to sustain these kind of delivery levels, at least for the next three to four quarters?
Shveta Arya, Managing Director
Data center demand continues to grow... difficult to tell you for the next three or four quarters. The demand continues for now.
Partial answer
High priority
Reason for gross margin dip: data center mix and LHP sales doubling?
Asked by Jonas Bhutta, Birla Mutual Fund
Acknowledged factors but did not confirm the analyst's specific hypothesis.
no specific attribution to data center or LHP
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Question
Is this what explains the both year-on-year and a sequential dip in our gross margins, a higher execution of the data center piece and even an almost doubling of our LHP sales?
Shveta Arya, Managing Director
The gross margin movement... one is that in the last year... there was a one-time benefit that we had... And then overall mix of products that we saw in this quarter is what impacts the gross margin.
Answered
High priority
Industrial segment subsegment breakup and outlook.
Asked by Amit Anwani, PL Capital
Provided exact revenue figures for each subsegment and explained growth drivers.
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Question
Any color you would like to give which subsegments? Railway, mining, construction... possible for you to share the breakup of subsegment for the first nine months?
Shveta Arya, Managing Director
For the first nine months... Construction, we have INR 455 crores. Rail, we have INR 357 crores. Mining, INR 170 crores... The overall number for the nine months is INR 1,189 crores.
Evasive
High priority
Whether 35% gross margin is a baseline going forward.
Asked by Amit Anwani, PL Capital
Did not confirm or deny the baseline, only stated aspiration to improve.
no baseline givenreframed as endeavor
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Question
Shall we consider this 35% as a kind of baseline number going forward, or is there any chance that the gross margin will further normalize in upcoming quarters?
Shveta Arya, Managing Director
From a gross margin perspective, I think our endeavor is to continue improving it... The endeavor is to continue improving the margins.
Answered
Medium priority
Value-based contribution of CPCB IV+ in this quarter.
Asked by Amit Anwani, PL Capital
Provided a specific percentage as requested.
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Question
What was the value-based contribution of CPCB IV+ in this quarter?
Shveta Arya, Managing Director
CPCB IV+ roughly would have been around 40% in this quarter.
Quantitative claims vs filed numbers
| Claim | Management said | Filing | Verdict |
|---|---|---|---|
| Power Gen Low HP sales INR 82 crores | ₹82 cr | ₹3,096 cr | Understated vs filing |
| Power Gen Mid-range sales INR 196 crores | ₹196 cr | ₹3,096 cr | Understated vs filing |
| Power Gen Heavy Duty sales INR 99 crores | ₹99 cr | ₹3,096 cr | Understated vs filing |
| Power Gen High HP sales INR 893 crores | ₹893 cr | ₹3,096 cr | Understated vs filing |
| Industrial segment nine-month sales INR 1,189 crores | ₹1,189 cr | ₹3,096 cr | Understated vs filing |
| Industrial Construction nine-month sales INR 455 crores | ₹455 cr | ₹3,096 cr | Understated vs filing |
| Industrial Rail nine-month sales INR 357 crores | ₹357 cr | ₹3,096 cr | Understated vs filing |
| Industrial Mining nine-month sales INR 170 crores | ₹170 cr | ₹3,096 cr | Understated vs filing |
| Marine segment revenue INR 20 crores in Q3 | ₹20 cr | ₹3,096 cr | Understated vs filing |
| Compressor segment revenue INR 51 crores in Q3 | ₹51 cr | ₹3,096 cr | Understated vs filing |
Filed figures sourced from Screener.in. Claims within a small tolerance of the filing are marked “matches filing”.