TVS firm Wheels India to raise equity

Almost 60% of Wheels India's revenue comes from wheels for commercial vehicles, passenger cars

TVS Group company Wheels India Ltd, which manufactures steel wheels, said it is looking at raising equity to meet the market regulator Securities and Exchange Board of India (Sebi's) public shareholding norm.

Srivats Ram, managing director, Wheels India, said,  “the company has time till end of the financial year to meet the Sebi 25 per cent public shareholding norm. We are confident of meeting the Sebi deadline”.

After announcing the company's results, he said drop in commercial vehicle sales and also construction and mining equipment had hit the revenues in the first half. Revenues in H1 stood at Rs 915.51 crore, as compared with Rs 1,016.12 crore registered in the same period last year.

During the period under review, it faced pressures against the rising labour and power costs.

In the tractor segment, it has done better than the industry, which grew 23 per cent in the first half of the current fiscal. On the construction and mining equipment sector recovery, he said they had discussions with customers in Japan and the US. The feedback from them was that the recovery was still 18 months’ away.

The company expects the rollout of JNNURM scheme during third quarter of the year to benefit its air suspension business.

Speaking on the de-risking strategy, he said, they would continue to focus on exports, including aluminium steels and tractor segment. The company was consciously growing the non-wheels business like fabrication for earth moving equipment and air suspension business, he added. It also makes parts for thermal and wind sectors and expects these to grow.

“We are not expecting any major change in the auto or commercial vehicle segment, with the second half expected to be on the lines of first half,” added Ram.