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Wheels India Ltd.

BSE: 590073 Sector: Auto
NSE: WHEELS ISIN Code: INE715A01015
BSE 00:00 | 11 Dec 906.15 6.15
(0.68%)
OPEN

893.00

HIGH

915.90

LOW

890.00

NSE 00:00 | 11 Dec 900.90 12.05
(1.36%)
OPEN

865.05

HIGH

905.00

LOW

861.00

OPEN 893.00
PREVIOUS CLOSE 900.00
VOLUME 234
52-Week high 1345.00
52-Week low 873.15
P/E 29.85
Mkt Cap.(Rs cr) 2,180
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00
OPEN 893.00
CLOSE 900.00
VOLUME 234
52-Week high 1345.00
52-Week low 873.15
P/E 29.85
Mkt Cap.(Rs cr) 2,180
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00

Wheels India Ltd. (WHEELS) - Chairman Speech

Company chairman speech

WHEELS INDIA LIMITED ANNUAL REPORT 2009-2010 CHAIRMAN'S REPORT Ladies and Gentlemen, I welcome you all to the 51st Annual General Meeting of your Company. The Indian economy's growth overall at 7.5% last year was commendable considering the severity of drop in demand in most countries and low agricultural production in India. A major segment of your Company's business, viz. wheels to Commercial Vehicles segment continued at the low level demand in the first quarter of the year under review. With the support extended by the Government through reduction in excise duty and easy availability of credit helped the Commercial vehicles segment grow from the second quarter. Passenger car production saw robust growth partly due to increased exports. In spite of poor agricultural production, the demand for agricultural tractors improved due to better availability of credit for the farm sector. To a certain extent, the growth of economy during the year under review was sustained by the effective steps taken by the Union Government in terms of excise duty reduction and making available credit to various segments including for renewal of fleets by State Transport Undertakings which helped your Company's Air Suspension business. Your Company is seeing improvement in demand in all segments being sustained in the current year. With regard to Air Suspension business, your Company saw high growth from Government support for State Transport Undertakings. Availability of loans from the Central Government to the STUs, appears to be unlikely in the current year. Suspension systems are now being incorporated in buses running in metros and larger towns. Availability of power has been a major constraint especially in your Company's main plant at Padi. High cost of power generation from captive diesel gensets is significantly affecting our cost of production. Volatility in steel prices continued to be a major factor affecting your Company's cost structure. While steel prices maintained steady when demand slackened in the first half. With revival of demand in the second half of the year, steel prices were put up by 12% in October 2009 followed by a further revision of 18% in April 2010. The high cost of steel has made steel based products expensive. To remain competitive, your Company will undertake measures to reduce other cost. We may need to restructure our operations to achieve this objective. Due to global recession, the year under review saw steep fall in your Company's exports for wheels for construction and mining equipment. The present year is seeing revival of markets especially for mining equipment wheels. Higher infrastructure spending in India planned by the Government is likely to revive construction equipment wheels. Your Company's exports in the current year are expected to improve substantially compared to the depressed exports in the year under review. Your Company commenced manufacturing and supply of steel structurals for power plants to a major customer from March 2010. In 2011, the output from this unit is expected to gradually improve and reach break-even by middle of the year. The demand in this segment appears to be significant and your Company is likely to see steady improvement in the sales. Your Company's performance in the current year is expected to be an improvement over the previous year in terms of sales and profits. With the steel cost increases being recouped from all customers, it is expected that there would be less volatility in steel prices in the current year. I would like to mention that it has been through team work and efforts of the employees that your Company has been able to manage the difficult operating condition during the year under review. We need to rededicate ourselves for improvement in efficiency and reduction in cost to meet competition. I wish to thank the Company's bankers for their continued support. I also wish to convey my appreciation of the good work done by all the employees of the Company. Speech delivered by Shri. S. Ram Chairman