Wheels India posts 4th quarter net profit at Rs 19.7 crore

Steel wheels manufacturer Wheels India has recorded net profits for the January-March 2019 quarter at Rs 19.7 crore. The city-based TVS Group company registered net profits at Rs 19.5 crore during same period of previous year. For the year ending March 31, 2019 net profits of the company went up by 5.43 per cent to Rs 75.7 crore as compared to Rs 71.8 crore registered year ago. Revenues for the quarter ending March 2019 grew to Rs 855.1 crore from Rs 705.1 crore registered a year ago.

Revenues for the year ending March 2019 went up to Rs 3,188.8 crore, from Rs 2,517.1 crore registered year ago. The Board has recommended a final dividend of Rs 4.75 per share. With an interim dividend of Rs 3.25 per share declared earlier, the total dividend is Rs eight per share. Commenting on financial performance, company Managing Director, Srivats Ram while briefing reporters here Thursday said the revenue growth was driven by strong demand in all business segments during the first half of the year that necessitated ramping up of capacities.

"Our investments last year were in line with this demand and we have started operations in two new plants - multi axle plant and plant to serve wind energy requirements in Tamil Nadu," he said. He said strong growth in exports was a major factor in revenue growth last year, with exports now at close to 20 per cent of the sales. On the outlook for 2019-20, he said, they would be cautiously optimistic about this year's prospects. According to him, exports in 2018-19 grew substantially to Rs 608 crore from Rs 384 crore.

On capital expenditure plans, he said "while we targeted to invest Rs 122 crore, the company ended up investing Rs 144 crore driven by the demand from customers." "We will continue to invest in our business", he said. He said change in emission norms next year result in some amount of pre-buy in the market.

"Continued investment in infrastructural development could result in positive sentiment and that could spur growth," Srivats Ram said. Wheels India has manufacturing facilities in Tamil Nadu, Maharashtra, Uttar Pradesh and Uttarakhand with a combined overall annual capacity of 10.3 million wheels. It has a customer base of 40 customers globally.