Shares of Cummins India hit a record high of Rs 1,616.50, up 10% on the BSE in intraday trade on Thursday after the company posted solid earnings for the December quarter (Q3FY23). The company’s profit after tax (PAT) rose 50% year-on-year and 42% quarter-on-quarter to Rs 479 crore.

Shares of the country’s leading maker of diesel and natural gas engines for power generation, industrial and automotive markets surpassed the previous high of Rs 1,551.05 hit on December 9, 2022.

At 9:53 am, Cummins India was quoted 8% higher at Rs 1,594, while the S&P BSE Sensex was down 0.16%.

Total sales for the quarter stood at Rs 2,144 crore, up 26% year-on-year and 12% quarter-on-quarter. EBITDA margin improved 327 basis points to 18.9% from 15.63% in Q3FY22.

The company reported a record quarterly profit driven by substantial domestic and export revenues and prudent cost management, which drove record quarterly revenue.

Management said the demand momentum the company had seen in previous quarters continued across all segments, including international markets this quarter. It added that a buoyant tax economy continued to gain momentum as commodity costs, oil and other industrial raw materials eased, and inflation moderated.

Management said they remain cautiously optimistic about the short-to-medium-term demand outlook as geopolitical risks and inflation could slow developed markets.

Looking ahead, Cummins India said the Government of India’s recently announced budget, which included more lavish spending in the infrastructure sector, including railways, is expected to create strong demand across all segments of the domestic market. India is set to reach a significant milestone in power generation by transitioning from CPCB II to CPCB IV+ emission standards from July 1 2023.

The Central Pollution Control Board has allowed the sale of CPCB II generator sets until December 31, 2023, after which the power generation market will develop according to the new emission standards.