Wheels India Q2 Net Profit grows to Rs. 25.85 crores

 

Wheels India Ltd (WIL) has registered a net profit of Rs. 25.85 crores for Q2 ended 30th September 2017 as compared to Rs. 12.42 crores registered in the corresponding period last year.

Mr. Srivats Ram, Managing Director, Wheels India Ltd

Revenues for Q2 ended 30th September 2017 increased to Rs.606.72cr as compared to Rs. 589cr in Q2 ended 30th September 2016. However this is not strictly comparable as revenues for Q2 ended 30th September 2017 is net of GST while the revenues for Q2 ended 30th Sept 2016 included Excise Duty as per the requirement under Ind AS. For the purpose of a like to like comparison, Revenue for Q2 ended 30th Sept 2016 is being given here net of Excise duty. Revenue for Q2 ended 30th September 2017 increased to Rs.606.72cr (Net of GST) as compared to Rs. 546.35cr (Net of Excise Duty) in Q2 ended 30th September 2016.

Over 50% of the company’s revenues come from the automotive wheels for cars, commercial vehicles and agricultural tractors, the balance come from wheels and components for construction & mining equipment, air suspension for commercial vehicles and components for energy equipment.

Net up in First Half

WIL’s net profit for the first half year ended 30th September 2017 went up to Rs.38.48 crores as compared to Rs. 27.05 crores registered in the corresponding period last year. Revenues, net of Excise Duty, for the first half year ended 30th September 2017 increased to Rs. 1,172 crores as compared to Rs 1,081 crores in the corresponding period last year.

Commenting on the performance in the first half, Mr. Srivats Ram, Managing Director, Wheels India Ltd., said, “Sale of wheels to construction equipment and agricultural tractor manufacturers have driven growth in the first half of the year. The exports business improved during the first half of the year on the back of growth in the mining segment. The ‘one time’ profit on slump sale of the passenger car steel wheel business has also contributed to the growth in profits.”

New Joint Venture with Topy Industries, (WCWL)

The profits were bolstered by a slump sale of its passenger car steel wheel business to its subsidiary WIL Car Wheels Ltd. (WCWL).Topy Industries, a leading Japanese car wheel manufacturer, has acquired a 26% stake in WCWL, with WIL holding the balance 74% share. The joint venture will take forward the strategic alliance between the two partners to, better, serve the passenger car industry.

The joint venture has just completed a groundbreaking ceremony for a new plant at Vanod, Gujarat to manufacture 1.5 million passenger car steel wheels and plans to invest Rs 42 crores to service customers in the state.

On the outlook for the second half of the year, Mr. Ram said, “A reasonable monsoon and the Government’s continued focus on infrastructure will enable the company to maintain performance in the second half of the year, despite a slowdown in the windmill industry.”

 

Tags:

 
 
 
 

DIGITAL EDITION

 
 

FEEDBACK

 
 

BACK EDITIONS

 
 
MI_advertise
 
 

NEWSLETTER SIGN UP

 
 

UPCOMING EVENTS