Wabco India Q1 FY22 PAT turnaround to Rs 21 cr

Wabco India's standalone net profit stood at Rs 21.38 crore in Q1 June 2021 (Q1 FY22) as compared to a net loss of Rs 31.36 crore in Q1 June 2020 (Q1 FY21).

Standalone net sales soared 196.40% to Rs 491.92 crore in Q1 FY22 from Rs 165.97 crore in Q1 FY21. Pre-tax profit was at Rs 30.85 crore in Q1 FY22 as against a pre-tax loss of Rs 38.95 crore in Q1 FY21. The Q1 earnings was declared post market hours yesterday, 28 July 2021.

The board had recommended a dividend of Rs 11 per share, for the financial year ended 31 March 2021 at the board meeting held on Friday, 17 May 2021. Upon approval by the shareholders, the payment of the dividend will be made on Tuesday, 28 September 2021 to the shareholders as on record date i.e. Friday, 17 September 2021.

WABCO India currently exports from the Mahindra World City plant and caters to the domestic customers from its Ambattur plant. The company stated that there is no scope for further expansion at both the plants as 100% of the land and floor space has been utilised.

However, there is an immediate need for setting up a new manufacturing unit to cater to the increased demand and support growth in exports. In this regard, WABCO India has identified land parcels at Phase II, SIPCOT Industrial Estate, Oragadam, Tamil Nadu with land Parcel-A admeasuring 31.5 acres and land Parcel-B admeasuring 18.5 acres totally admeasuring 50 acres on lease for a period of 99 years towards setting up of a manufacturing unit.

The board at the previous meeting held on 17 May 2021 approved entering into a lease deed with the SIPCOT Industrial Estate for expanding the company's operations. WABCO India has signed a Memorandum of Understanding (MoU) with the Government of Tamil Nadu for this proposed expansion project. The new project is envisaged to be a Center of Excellence for manufacturing excellence catering to both export and domestic customers.

Hence, WABCO India at their meeting, decided to incorporate a wholly owned subsidiary in Tamil Nadu with an authorised and paid-up capital of Rs 1 crore in the state of Tamil Nadu for this expansion.

Wabco India manufactures automotive parts. The company produces electronic braking, stability, and suspension and transmission control systems for heavy-duty commercial trucks, trailers and buses.

Shares of Wabco India gained 0.08% to Rs 7,182 on BSE. The scrip hovered in the range of Rs 7,136.35 to Rs 7,500 so far.

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