Wheels India's Q3 net profit more than doubles; forged aluminium wheels segment on track

<p>TVS Group promoted India's largest auto component manufacturer Wheels India Limited has posted net profits at INR13.21 crore for the third quarter ended December 31, 2016, up 120.9 per cent from INR5.98 crore of the corresponding period last year. The company with a robust portfolio featuring forged aluminium wheel rims amongst other products made it to the record margins mainly due to improved operating performance on the back of strong revenue growth. <br /><br />Wheels India's topline grew by 14 per cent from INR470 crore to total at INR537 crore in the quarter under review. <br /><br />For the initial nine months of 2016, the company's net profit stood at INR40.9 crore, up 77.6 per cent from INR23.02 crore in the same period of 2015. Revenues took a leap from INR1480 crore in 2015 to total at INR1,616 crore in 2016. <br /><br /><img style="vertical-align: middle; display: block; margin-left: auto; margin-right: auto;" src="http://www.alcircle.com/uploads/images/WheelsIndiaFeb13.jpg" alt="News" width="517" height="226" /><br />Commenting on the landmark performance, Wheels India managing director Srivats Ram said, &ldquo;We are on track to meet our revenue growth targets for the year. The company has seen good growth in the non-wheel business and in the domestic agricultural tractor sector. However, the rural sector demand slowed down in recent months.&rdquo;<br /><br />The segments which contributed to the volume growth include Air suspension, lift axle suspension, and business supplying parts to energy equipment manufacturers, especially the windmill sector.<br /><br />{googleAdsense} <br /><br />Wheels India manufactures forged aluminium wheels using High strength aluminium alloy (6061) and sells under the brand name of &ldquo;Xlite.&rdquo; The semi-finished products are rotary forged and spun for high strength from a single piece alloy billet. In 2015-2016, the company's total consumption of aluminium stood at 47.50 tonnes. <br /><br />Wheels India in its report held an optimistic outlook for exports in 2017, with a base effect in the off-highway segments, and growth projected in the forged aluminium truck wheel business.</p>