Leading steel wheels manufacturer Wheels India has registered a net profit of Rs. 54.1 crores for FY20 as against the net profit of Rs. 75.7 crores it had posted for the previous year. The company’s revenues for FY20 stood at Rs. 2,438.7 crores, in comparison to Rs. 3,188.8 crores it had clocked in FY19.
On the company’s FY20 performance, Srivats Ram, MD, Wheels India, said: “The slowing economy resulted in a decline in sales of major industry segments, with the commercial vehicle segment being worst affected. The declining sales along with the COVID lockdown impact in the last month affected sales and profits.”
On the outlook for the current year, Ram said: “While we have been adversely affected by the lockdown over the first two months of the year, and expect decline in the automotive industry, we expect sales of agricultural tractors and our windmill business to remain at around the previous year levels.”
Wheels India manufactures steel wheels for trucks, buses, agricultural tractors, construction equipment, utility vehicles and passenger cars. The company has manufacturing plants in Tamil Nadu, Maharashtra, Uttar Pradesh and Uttarakhand with a combined overall annual capacity of 10.3 million wheels. Over 50% of the company’s business accrues from the manufacture of automotive wheels for commercial vehicles, agricultural tractors and cars while the balance comes from wheels/components for construction & mining equipment, air suspension for CVs and components for energy equipment.