Wheels India has reported a 25 per cent increase in net profit at ₹13.3 crore for the quarter ended June 30, 2023, driven by exports that accounted for a quarter of the company’s sales during the period.
“In Q1, amidst a muted domestic market, exports were strong at 25 per cent of our sales. There was a strong demand for buses in the latter part of Q1,” said Srivats Ram, Managing Director, Wheels India.
The strong export growth in Q1 comes after some challenges in FY23, which saw the company report a marginal decline in exports. Export sales stood at ₹976 crore in FY23 as against ₹1,001 crore in FY22. Share of exports in total revenue stood at 22 per cent in FY23 as against 27 per cent in FY22.
Addressing the company’s AGM recently, Ram indicated that the company would show some growth in its export business, building on its strong relationships with global OEMs.
Revenue for the June 2023 quarter grew 7 per cent to ₹1,124 crore (₹1,053 crore).
“We believe that there is a strong prospect to grow the hydraulic cylinder business with our existing customers,” he said, while referring to the recent NCLT approval for the merger of Sundaram Hydraulics with Wheels India.
Presenting the growth outlook, he said: “The domestic wheel business should pick up post-monsoon in the second half.”