Wheels India Q2 net falls 14% to ₹23 crore

Our Bureau Chennai | Updated on November 13, 2018 Published on November 13, 2018

Srivats Ram, MD, Wheels India at a press conference in Chennai on Tuesday   -  Bijoy Ghosh

TVS group company Wheels India Ltd’s net profit fell by 14 per cent to ₹22.7 crore for the September quarter against ₹26.4 crore for the same period last year.

“Last year’s net profit included a slump sale worth ₹10 crore from our passenger car division made during Q2 FY17-18,” said Srivats Ram, MD, Wheels India. The net profit on a half-yearly basis rose 3.3 per cent on a year-on-year basis to ₹40.7 crore during September against ₹39.4 crore in the previous period.

Revenues for the September quarter increased by 32 per cent to ₹796 crore (₹605 crore).

Over 60 per cent of the company’s revenue came from automotive wheels for commercial vehicles (CV), cars and tractors, while remaining came from wheels/components for construction and mining equipment.

“The commercial vehicle segment remains strong due to infrastructure developments in the country and it is likely to be so for the remaining part of the year,” Ram said.

Listing global trade uncertainties, upcoming general elections and rising fuel prices as some of the issues of concern for the industry, Ram said the company, however, is on a fairly good wicket.

“BS-VI deadline of April 2020 will motivate pre-buying sentiment as the price of CVs will increase post the new norms,” Ram said.

Terming capacity expansion as one of the challenges, Ram said the company has already sanctioned ₹122 crore for capital expenditure and will focus on utilising the full capacity by the end of the year.

“There will be no substantial investment in the capacity catch-up. We should complete all our planned capacity expansion by end of December,” Ram said.

The company’s exports for the half-yearly period stood at ₹279 crore, up from ₹184 crore in the same period last year.

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Published on November 13, 2018
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