Wheels India Managing Director Srivats Ram says that a change in product mix, increased focus on cost control and some improvement in the CV resulted in strong profit growth in Q1.
| Photo Credit: Special Arrangement
Wheels India Ltd., (WIL) reported standalone net profit for the June quarter rose 92% over the year ago period to ₹25 crore driven by cost control measures and a change in the product mix.
Revenue from operations contracted to ₹1,083 crore from ₹1,128 crore. Revenue from automotive components slid by ₹36 crore and in industrial components by ₹9 crore, the leading manufacturer of aluminium wheels said in a statement.
“A change in product mix, our increased focus on cost control and some improvement in the commercial vehicle business has contributed to the strong profit growth in Q1,” said MD Srivats Ram.
On the immediate growth prospects, he said: “While the overall growth prospects on domestic and export business are muted, we expect the hydraulic cylinder business and cast aluminium wheel business to grow in the second half of the year.”
WIL had announced a capex plan of Rs. ₹225 crore for this year towards expansion of the cast aluminium and machining for windmill castings businesses, apart from agri/earth moving wheels and hydraulic business.
The company is planning to increase the production of aluminium wheels from the current level of 25,000 wheels per month to 40,000 wheels per month in the second half of the year.
