Wheels India Ltd., a leading steel wheels manufacturer, has registered a 40.99 per cent rise in net profit for Q2 ended September 30, 2016, at Rs. 13.07 crores as compared to Rs. 9.27 crores registered in the corresponding period last year. Revenues for Q2 increased 5.41 per cent to Rs. 546 crores as compared to Rs. 518 crores registered in Q2 ended September 30, 2015.
Wheels India’s net profit for the first half year ended September 30, 2016, went up 62.50 per cent at Rs. 27.69 crores as compared to Rs. 17.04 crores registered in the corresponding period last year. Revenues for the first half year ended September 30, 2016, shot by 6.93 per cent to Rs. 1,080 crores as compared to Rs. 1,010 crores registered in the corresponding period last year.
Commenting on the performance in the first half, Mr. Srivats Ram, Managing Director, Wheels India Ltd., said: “While there was a slowdown in the CV business in Q2, the non-wheel business contributed to the company’s growth in sales and profitability.”
Over 50 per cent of Wheels India’s revenue comes from wheels for CVs and passenger cars with the rest coming from the agricultural tractor, construction and mining equipment, air suspension systems and energy equipment parts.
Export business, which leans on the global demand for agricultural and construction equipment wheels, has declined with the cyclical downturn in these businesses globally and forms 16 per cent of sales.
On the outlook for the second half of the year, Mr. Srivats said: “We expect the revenues in the second half to be in line with the first half.”
On the company’s prospects in the CV sector, he noted: “It looks likely that the Government will implement GST from April 1, 2017. At the same time, there is a price hike that is expected with BS-IV implementation from April 1, 2017. The GST rates and implementation dates for the schemes would decide whether there is a pre-buy or not in the CV segment prior to March 31, 2017.”