Wheels India Ltd posts profits for Q2 2017, aluminium wheels capacity expansion in pipeline

Wheels India Ltd., a steel and aluminium alloy wheels manufacturer has reported a net profit of INR 13.07 crore for the second quarter ended September 30, 2016, up 40.99 per cent from INR 9.27 crore in the corresponding period previous year. Revenues during the quarter grew 5.41 per cent to INR 546 crore from INR 518 crore registered in same quarter previous fiscal.

Managing director of Wheels India, Mr. Srivats Ram said that this was an achievement given the fact that there was a slowdown in the domestic commercial vehicle market in the second quarter of the current financial year. It was the non-wheel business that contributed to the company's improved sales and profitability.

Over 50 per cent of the Indian wheels manufacturer's revenue comes from wheels for the CVs and passenger cars while the rest come from tractors, construction and mining equipment, air suspension systems, and energy equipment parts.

Srivats sounded optimistic on the company’s outlook for the second half of the year. He said he expects the revenues in the second half to be in line with the first half of the current financial year.

According to the sources close to the company, Wheels India is investing around INR 75 crore this year which includes a significant investment in capacity expansion of both the aluminium wheels and wind energy components.

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"This should reflect in higher volumes next year. We are expanding aluminium wheels capacity by 25 per cent. In the wind segment, revenues are likely to increase by 15 per cent next year," Mr. Ram said.

In 2017, the company expects the exports to grow as a result of the increasing demand for aluminium alloy wheels in the international market.