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Cummins India shares tank 7% after parent suspends guidance, PowerGen business dragsFor the India region, Cummins Inc. had guided for revenue growth of 10%, and that included the unlisted Joint Venture companies as well.By Vamakshi Dhoria   | Hormaz Fatakia   May 6, 2025, 9:30:07 AM IST (Updated)2 Min ReadShares of Cummins India Ltd., the producer of diesel and natural gas engines, fell over 7% on Tuesday, May 6, after the company's parent, Cummins Inc., reported its results for the March quarter on Monday and suspended its guidance for the full year. The stock is the top Nifty 500 loser.

Cummins Inc. had earlier guided for the revenue growth of a negative 2% to a positive 3%, while the PowerGen revenues at a parent level were supposed to grow between 5% and 15%.

For the India region, Cummins Inc. had guided for revenue growth of 10%, and that included the unlisted Joint Venture companies as well.

However, all of this guidance now stands withdrawn due to US President Donald Trump's tariff war and the related uncertainties.

For the March quarter, revenue of all Cummins entities, including Joint Ventures in India, declined by 14% on a year-on-year basis. Cummins Inc. has several entities in India in the form of JVs, out of which, only Cummins India is the listed entities.

The PowerGen business in India saw revenue decline by 11% from the same quarter last year. The revenue saw a drop as the base quarter included pre-buying ahead of the emission regulation changes.

Cummins India's revenues are more co-related to the PowerGen India revenue and therefore, this has a negative read-through for the India entity.

Shares of Cummins India are trading 5.8% lower on Tuesday at ₹2,769.2. The stock has nearly given up all the gains it had seen in the last one month. On a year-to-date basis, the stock is down 15%.Continue ReadingFirst Published: May 6, 2025 6:23 AM ISTCheck out our in-depth Market Coverage, Business News & get real-time Stock Market Updates on CNBC-TV18. Also, Watch our channels CNBC-TV18, CNBC Awaaz and CNBC Bajar Live on-the-go!TagsCumminsCummins Indiashare market today