Even though impacted by slowdown in the commercial and passenger vehicle sector, Wheels India has maintained steady growth in its air suspension biz
Wheels India Ltd., a part of the TVS Group, has registered a net profit of Rs. 28.67 crores for the Q2 ended September 30, 2019 as compared to Rs. 22.67 crores registered in the corresponding period last year. Revenues for Q2 ended September 30, 2019 stood at Rs. 595.63 crores as compared to Rs. 805.28 crores in the corresponding period last year.
Commenting on the performance in the first half, Srivats Ram, Managing Director, Wheels India Ltd., said: “While there was a severe slowdown in the CV and PV industry affecting the automotive component business, it was partially offset by strong growth in the industrial component business. One of the major factors which have affected the CV segment is the introduction of axle load rating.”
“However, there are hopes in the improvement of vehicle sales with the BS-VI norm introduction effective from April 1, 2020. Revival in the CV segment will mainly be attributable to the government’s increasing investment on developing road infrastructure.”
Meanwhile, as already planned, the company is setting up a cast aluminium wheel plant near Chennai with an investment of Rs. 140 crores that is expected to start operations next year. The new plant will produce around 750,000 wheels per annum in a year to start with and it will have a major focus on exports after meeting the domestic demand. It has already identified a customer from the US for export.
Srivats said: “The truck industry had a quarter of severe slowing down accompanied by a similar trend in the light vehicle and construction equipment industry. There are signs of slowing global demand affecting our business. At the same time, we have been able to grow our bus air suspension business and our railway and windmill business, where we have started executing some export opportunities.”
Wheels India is a leading manufacturer of steel wheels for light vehicles, commercial vehicles, agricultural tractors, construction and mining equipment; air suspension systems for buses and trucks; and components and structures for windmill, railways and thermal power plants. The company exports more than 20% of its sales and has a diversified base of over 40 customers.