: Steel wheels maufacturing major Wheels India on Tuesday said its manufacturing unit to produce cast aluminium at nearby Gumidipoondi would go on stream in the next fiscal.
The company, part of the diversified conglomerate TVS Group, said the overall capital expenditure plans for the current financial year was on track.
"Since the exports business and industrial component sectors are doing well, we are continuing to invest for the long term.
The new Rs 140 crore cast aluminium plant will go on stream the next financial year", Wheels India Managing Director Srivats Ram said.
He said the plnat would have an annual manufacturing capacity of 7.50 lakh wheels.
On the exports front, he said revenue from overseas business during the first six months of the year contributed 20 per cent to the total sales.
"We see exports contribution going up, especially in the industrial components segment", he said.
On the windmill business, he said the company was expanding the product offerings as it would help them build a customer base.
From a base of zero just over a decade ago, the industrial components segment now contributes 18 per cent of the overall sales, he said.
Ram said the automotive segment was bottoming out and hoped that some growth would happen in the future.
"I do not see great visibility in the immediate term in the CV (Commercial Vehicle) sector. But since it has hit a real low base, it should turn around sometime soon", he said.
He said FY 2020-21 would be more positive than the current financial year.
On the company'S financials, he said the net profits for the quarter ending September 30, 2019 grew to Rs 28.6 crore from Rs 22.67 crore registered a year ago.
Revenue for the quarter ending September 30, 2019 was Rs 595.63 crore as against Rs 805.28 crore for the same period last year.
"While there was a slowdown in the commercial vehicle and passenger vehicle industry, affecting the automotive component business, it was partially offset by strong growth in the industrial components business", Ram said.
The Truck industry had a quarter of severe slowing down accompanied by a similar trend in the light vehicle and the construction equipment industry, he said.
(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)