Wheels India Q2 Net marginally up at Rs 8.7 cr

Firm had reported net profit at Rs 8.6 crore during the same period of previous year

TVS Group Company, Wheels India Ltd, has reported a marginal increase in net profit at Rs 8.73 crore for the second quarter ended September 30.

The firm had reported net profit at Rs 8.60 crore during the same period of previous year, Wheels India Ltd Managing Director, Srivats Ram said.

 Total revenues of the company for the second quarter dipped to Rs 465.38 crore from Rs 496.51 crore registered during the same period of previous year.

For the half-year ending September 30, 2013 the net profit slipped to Rs 15.51 crore from Rs 17.53 crore.

The revenues for the half-year ending September 30, 2013 stood at Rs 915.51 crore as against Rs 1,016.12 crore.

"The operating environment has been challenging in the first half with slowdown in both the domestic and export automotive markets.This has impacted our financial performance, which is reflected in the results," he told reporters here.

To a query, he said the depreciation of rupee against US dollar had a "positive impact" by helping the company reach whatever performance level it has reached during the first half of this financial year.

Observing that the company does not see any "immediate recovery" in the auto-sector, he said: "...We expect a modest second half in terms of financial performance with the introduction of JNNURM (Jawaharlal Nehru National Urban Renewal Mission) during fourth quarter."

As part of the company's de-risking strategy he said, the company would focus on three areas -- exports, non-wheel business and after-market.

"We will continue to focus on exports, including in aluminium steels business and tractor segment. We are consciously growing the non-wheels business like fabrication for earth moving equipment and air suspension business. We also make parts for thermal and wind sector. These will grow," he said.

On the after-market business, he said the company last year launched 'WILGO', which was making some kind of progress in its first year of operations.

"We have built a foundation (by introducing WILGO). We have said the target revenue from WILGO to be Rs 100 crore in three years time. But now we are saying it to be four years. We have built a foundation and we will look to increase the number of products," he said.

"We are not expecting any major change in the auto or CV sector. We expect second half to be on the lines of the first half," he said.