Wheels India net profit up 30% at Rs 12 cr in Q3, revenue rises 10%

Wheels India Ltd has registered a 30.4 per cent rise in net profit for the third quarter ended December 31, 2020, at Rs 12 crore, from Rs 9.2 crore in the comparative period of the previous year.

Revenue for Q3 ended December 2020 rose by 9.8 per cent to Rs 640 crore from Rs 583 crore in the same period last year.

The Company exports were around 20 per cent of its sales. The firm has a diversified customer base with over 40 customers globally.

During the third quarter, the Company began its first shipment of cast aluminum wheels to the US from its newly commissioned plant in Thervoy Kandigai.

Commenting on the performance in Q3, Srivats Ram, MD, Wheels India Ltd, said, “We have seen a decent performance in all segments other than CV (Bus, in particular) and Railways. The Tractor and Construction Equipment segment saw strong demand. We have been able to grow our exports reasonably in this period.”

On the outlook, he said, “We expect the momentum we have in exports to continue, though there is some concern due to the escalation in commodity prices.”

Part of the TVS Group, Wheels India is a leading manufacturer of steel wheels for trucks, buses, agricultural tractors, construction equipment, utility vehicles and passenger cars. The Company has manufacturing plants at Tamil Nadu, Maharashtra, Uttar Pradesh and Uttarakhand with a combined overall annual capacity of 10.3 million wheels.

Over half the Company’s business accrues from the manufacture of automotive wheels for Commercial Vehicles, tractors and cars, while the balance comes from wheels/components for construction & mining equipment, air suspension for commercial vehicles and components for energy equipment & railway bogie frames and parts.