Wheels India Ltd. (WIL) has registered a net profit of Rs. 25.85 crores for Q2 ended September 30, 2017, as compared to Rs. 12.42 crores registered in the corresponding period last year.
Revenues for Q2 ended September 30, 2017, increased to Rs. 606.72 crores (Rs. 589 crores). However, this is not strictly comparable as revenues for Q2 ended September 30, 2017, is net of GST while the revenues for Q2 ended September 30, 2016, included excise duty as per the requirement under Ind AS.
For the purpose of a like to like comparison, revenue for Q2 ended September 30, 2016, is being given here net of excise duty. Revenue for Q2 ended September 30, 2017 increased to Rs. 606.72 crores (net of GST) as compared to Rs. 546.35 crores (net of excise duty) in the Q2 ended September 30, 2016.
Over 50% of the company’s revenues come from the automotive wheels for cars, commercial vehicles and agricultural tractors, the balance is from wheels / components for construction & mining equipment, air suspension for commercial vehicles and components for energy equipment.
WIL’s net profit for the first half year ended September 30, 2017, went up to Rs. 38.48 crores as compared to Rs. 27.05 crores registered in the corresponding period last year. Revenues, net of excise duty, for the first half year ended September 30, 2017, increased to Rs. 1,172 crores as compared to Rs. 1,081 crores in the corresponding period last year.
Commenting on the performance in the first half, Mr. Srivats Ram, Managing Director, Wheels India Ltd., said: “Sale of wheels to the construction equipment and agricultural tractor manufacturers have driven growth in the first half of the year. The exports business improved during the first half of the year on the back of growth in the mining segment. The ‘one time’ profit on slump sale of the passenger car steel wheel business has also contributed to the growth in profits.”
The profits were bolstered by a sale of its passenger car steel wheel business to its subsidiary WIL Car Wheels Ltd. (WCWL). Topy Industries, a leading Japanese car wheel manufacturer, has acquired a 26% stake in WCWL, with WIL holding 74%. The joint venture will take forward the strategic alliance between the two partners to serve the passenger car industry much better.
The joint venture has just completed the groundbreaking ceremony for a new plant at Vanod, Gujarat, to manufacture 1.5 million passenger car steel wheels and plans to invest Rs. 42 crores to service customers in the State.
On the outlook for the second half of the year, Mr. Srivats said: “A reasonable monsoon and the Government’s continued focus on infrastructure will enable the company to maintain performance in the second half of the year, despite a slowdown in the windmill industry.”