Wheels India pledges INR200 cr as CAPEX to intensify aluminium wheel production

Wheels India Ltd, a major player in the automotive wheel industry, has allocated INR 200 crore towards capital expenditures in FY23-24. This is part of the company's plan to gradually increase wheel production for commercial vehicles, tractors, aluminium wheels, and windmill machining segments.

In 2022, the company had a capex of Rs 143 crore. According to Srivats Ram, MD of Wheels India, the company holds a 5% market share in the domestic aftermarket segment. The company is expanding its relationships with global customers and exploring new platforms.

Cast aluminium is a strong suit for the company, and the first supply of these wheels will be made this month, with the possibility of adding another customer in Q3 of this year. The company has increased its exports in Q4, and the MD expects double-digit growth on the export front this year.

About the detailed assessment, Srivats Ram, exclaimed: “Exports are exhibiting promising signs despite the uncertain global environment. We are positive that this year’s export growth will be a result of our solid customer relationships.”

Wheels India reported a net profit of Rs 65.2 crore for the fiscal year that ended on March 31, 2023, down from Rs 79.8 crore for the same period the previous year. However, revenue increased by 18% to Rs 4,332.1 crore (from Rs 3,686.7 crore) compared to the year ending March 31, 2022.

Wheels India's board of directors has suggested a final dividend of Rs 3.97 per share. For FY22-23, the company declared an interim dividend of Rs 3 per share in January 2023.