Wheels India Ltd., a leading manufacturer of steel wheels, has registered a 23% increase in its net profit for the year ended March 31, 2018, at Rs. 71.8 crores as compared to Rs. 58.4 crores in the year ended March 31, 2017. Revenues (net of excise duty) for the year moved up 14% to Rs. 2,469.5 crores from Rs. 2,176.1 crores in the previous year ended March 31, 2017, driven largely by a demand uptake in the CVs and passenger car segments and a recovery in the overseas markets for its business segments in the second half of the year.
Net profit for Q4 ended March 31, 2018, increased 12.7% to Rs. 19.5 crores as against Rs. 17.3 crores registered in Q4 ended March 31, 2017. Revenues for Q4 ended March 31, 2018, went up 26.6% to Rs. 705 crores from Rs. 557.7 crores (net of excise duty) registered in the same period of the previous year.
There are signs of recovery in the cyclical user segments that constitute the bulk of the company’s exports. The company exports wheels for off-road (construction, mining and agricultural) equipment to the US, Japan, the UK, South Korea and Brazil. In the last financial year, it exported 16% of its sales turnover.
Commenting on the performance, Mr. Srivats Ram, Managing Director, Wheels India, said: “The growth in the last quarter was driven by growth in demand for commercial vehicle wheels in the domestic market and growth in the construction and mining wheels globally. The slump sale of our passenger car business also contributed to the growth in net profit in 2017-18.”
On the outlook for the year, Mr. Srivats said: “We expect the strong growth in domestic sales to continue this year. The export business is also likely to grow at a faster pace in the coming year. The domestic demand is driven by replacement demand in the CV market, Government infrastructural initiatives and pro-agriculture policies. The challenges facing the company in the coming year are ramping up to meet the demand and overcoming industrial inflation.”