Wheels India Q3 profit down 40%

Our Bureau Chennai | Updated on February 13, 2020

Wheels India has reported a 40 per cent fall in its net profit at ₹9.2 crore for the third quarter ended December 31, 2019 when compared with ₹15.3 crore in the corresponding period of the previous year, on the back of lower operating profit due to lower revenues on account of sluggish automotive market.

The company registered revenues of ₹583 crore as compared to ₹786 crore, a decline of 26 per cent. Profit before exceptional items and tax stood at ₹12.25 crore as against ₹22.33 crore.

Since the company derives a significant portion of its revenues from the supply of wheels to the domestic commercial vehicle, passenger cars and tractor segments, the prevailing slowdown in auto and tractor segments impacted the performance of the company.

Demand scenario for commercial vehicles remains challenging due to BS-VI transition, system overcapacity and economic slowdown.

For the nine-month period ended December 31, 2019, the company’s net profit fell to ₹49.49 crore from ₹56 crore in the same period previous fiscal.

Revenues stood at ₹1,888 crore as against ₹2,328 crore, posting a decline of 19 per cent.

The board has declared an interim dividend of ₹3 (30 per cent) for each fully paid-up equity share.

Published on February 13, 2020

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