Aug 5 (Reuters) - Engine maker Cummins India reported a marginal rise in quarterly profit on Wednesday, as strong domestic demand across its power generation, industrial and automotive markets was largely overpowered by higher costs.
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The company, a unit of U.S. truck engine maker Cummins, posted a 0.83% rise in consolidated profit after tax to 6.09 billion rupees ($64.03 million) for the quarter ended June 30.
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Income from operations rose 18.1% to 33.75 billion rupees.
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Expenses rose at a faster pace of 22.8%, largely led by a jump in raw material costs.
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Cummins also said that Managing Director Shveta Arya has stepped down to pursue external opportunities, while the company evaluates candidates for the position.
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The company told Reuters in June that the U.S.-Iran war has raised production, commodity and logistics costs and weakened export demand due to supply-chain challenges.
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Motilal Oswal analysts said Cummins is likely to benefit from rising demand for high horsepower engines for data center power generation in fiscal year 2027.
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The company's share of profit from joint ventures and associates, net of tax, stood at 898.3 million rupees in the quarter, up from 652.8 million rupees a year earlier.
($1 = 95.1175 Indian rupees)
Reporting by Abhirami G and Abhinav Parmar in Bengaluru; Editing by Sonia Cheema
Source: Reuters