Wheels India Ltd. has registered an 18.6% rise in its net profit for the third quarter ended December 31, 2018, at Rs. 15.3 crores as compared to Rs. 12.9 crores registered in the corresponding quarter of the previous year. Revenues for the quarter moved up 32.8% to Rs. 786 crores from Rs. 591.9 crores registered in the quarter ended December 31, 2017.
The Board has declared an interim dividend of Rs. 3.25 (32.5%) for each fully paid up share.
The company registered a 7% rise in its net profit for the nine months ended December 31, 2018 at Rs. 55.9 crores as compared to Rs. 52.30 crores registered in the nine months ended December 31, 2017. Revenues for the nine months moved up 29% to Rs. 2,333.8 crores from Rs. 1,808.3 crores registered in the nine months ended December 31, 2017. Profits of the previous nine months ended December 31, 2017, included an exceptional item – profit on slump sale of its passenger car steel wheel business to its subsidiary WIL Car Wheels Ltd.
Commenting on the company’s performance, Mr. Srivats Ram, Managing Director, Wheels India Ltd., said: “There was a slowing down of the car and truck segments towards the latter part of the third quarter. However, the quarter saw strong growth in export markets.”
In recent years, the company has expanded its presence in the non-wheels segment. Over 65% of its revenues come from the automotive wheels for commercial vehicles, cars and agricultural tractors, while the balance comes from wheels / components for construction & mining equipment, air suspension for commercial vehicles and components for energy equipment.
Around 80% of the company’s business comes from the domestic market. The company exports wheels for off-road construction equipment and agricultural applications to the US, Japan, Brazil, Korea, Europe and the UK.