Wheels India records strong net profit of Rs 25cr in Q1 due to cost control

Leading manufacturer of wheels for trucks, tractors and passenger vehicles Wheels India Ltd has reported a net profit of Rs 25.37 crore for the April-June 2024 quarter, thanks to cost control measures and change in the product mix, a top official of the company has said.

The city-based company had recorded a net profit of Rs 13.22 crore in the corresponding quarter last year.

"A change in the product mix, increased focus on cost control and some improvement in the CV (commercial vehicles) business has contributed to the strong profit in Q1," Wheels India Ltd MD Srivats Ram said.

Total revenues during the quarter under review stood at Rs 1,088.20 crore, as against Rs 1,133.02 crore in the same quarter last year.

Wheels India has earmarked Rs 225 crore as capital expenditure for the current financial year towards taking up expansion of the cast aluminium and machining for windmill castings businesses.

The company is planning to increase the production capacity of aluminium wheels from 25,000 wheels per month to 40,000 wheels per month in the second half of the year.

On the outlook, Ram said, "While the overall growth prospects on domestic and export business are muted, we expect the hydraulic cylinder business and cast aluminium wheel business to grow in the second half of the year."

Wheels India currently has manufacturing facilities in Tamil Nadu, Maharashtra, Uttar Pradesh and Uttarakhand.