Wheels India reports net profit of Rs 7.43 cr in September quarter
Wheels India Ltd reported a net profit of Rs 7.43 crore for the second quarter ended September 30, 2020. The company had reported a net profit of Rs 28.67 crore in corresponding period of the last year. The company said that these numbers were not comparable as the net profit in Q2FY20 included a one-time write back of deferred tax liability of Rs.19.80 crore.
The company reported a revenue of Rs 510.84 crore in Q2FY21 compared to the Rs 595.63 crore reported in the same period last year.
Earlier this week, the company began production at a newly commissioned cast aluminum wheel plant at Thirvoy Kandigai. The plant has an annual capacity of 750,000 wheels. Initially, the company plans to export its production to overseas customers.
Srivats Ram, MD, Wheels India Ltd, said, “After the lockdown in March, we started running our plants at some level only towards the end of the first quarter. With the unlocking of the economy, we reached around 90% of our pre-Covid production levels in September.”
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The company exports around 20% of its production and has a diversified customer base with over 40 customers globally. On the revival of the exports segment, Srivats said, “We have been able to build and grow relationships with export customers and expect this to augur well as we move into the next year.”
Speaking on the outlook for the second half of the year, he said, “There has been some build-up of demand towards the festival season, in most segments barring the CV segment. The current momentum that we are seeing augurs well and should build into growth in FY22.”
Wheels India Ltd is a leading manufacturer of steel wheels for trucks, buses, tractors, construction equipment, utility vehicles and passenger cars. The company has manufacturing plants in Tamil Nadu, Maharashtra, Uttar Pradesh and Uttarakhand with a combined overall annual capacity of 10.3 million wheels.
Over 50% of the company’s business accrues from the manufacture of automotive wheels for commercial vehicles, tractors and cars, while the balance comes from wheels/components for construction & mining equipment, air suspension for commercial vehicles and components for energy equipment & railway bogie frames and parts.
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