Cummins India shares fell sharply on Tuesday after the parent company withdrew its full-year forecast owing to economic uncertainties. While Cummins is not the first company to revise its growth outlook, its latest announcement signals the broader impact of Trump's tariff policy.
At 11:26 am, Cummins India shares were trading at Rs 2,786.20 price level, down by over 5.24% on the National Stock Exchange.
During the recent earnings call, Jennifer Rumsey, chair and CEO of Cummins Inc highlighted the 'increasingly challenging environment' and said, “due to growing economic uncertainty driven by tariffs we have withdrawn our full year forecast.”
"While the outlook for the remainder of the year remains unclear, we remain confident in our position and that our Destination Zero strategy is the right one," Jennifer Rumsey, Chair and CEO said during the earnings call. "Cummins is in a strong position to navigate through economic uncertainty, and we look forward to reinstating our forecast when conditions allow," she added.
The diesel and natural gas engine manufacturer had earlier forecasted its total revenue to fluctuate between a 2% decrease and a 3% increase. At the corporate level, PowerGen revenue was projected to grow by 5% to 15%. In India, the company expected a 10% rise in revenue, factoring in contributions from its unlisted joint venture entities.
However, all these guidance figures are now withdraw owing to the economic uncertainties rising from trade tensions.
Cummins India Share Price
The shares of Cummins India experienced a drop of 7% on NSE during the morning trade session. So far this year, the stock price has dropped from Rs 3,230 price level to Rs 2,786 (currently), indicating a decline of over 13%.
While concerns still linger, the management still remains confident on the overall positioning of the company.
“Cummins is in a strong position to navigate through economic uncertainty, and we look forward to reinstating our forecast when conditions allow,” chair and CEO Rumsey said.
