Wheels India zooms 20% as Q2 profit more than doubles

The stock zoomed 20% to Rs 1,970, also its all-time high on the BSE.

Wheels India zoomed 20% to Rs 1,970, also its all-time high on the BSE, after the company reported a more than double net profit at Rs 26.41 crore in September quarter (Q2FY18). The company recorded one-time gain of Rs 12.49 crore on account of slump sale of the passenger car steel wheels business to WIL Car Wheels.

The auto parts & equipment company had profit of Rs 12.41 crore in a year ago quarter.

Revenue for the quarter under review grew 11% at Rs 607 crore in Q2FY18 against Rs 546 crore in the corresponding quarter of previous fiscal.

“Sale of wheels to construction equipment and agricultural tractor manufactures has driven growth in the first half of the year. The export business improved during the first half of the year on the back of growth in mining segment,” said Srivats Ram, managing director, Wheels India.

A reasonable monsoon and the Government’s continued focus on infrastructure will enable the company to maintain performance in the second half of the year, despite a slowdown in the windmill industry, he added.

At 12:45 PM; the stock was trading 18% higher at Rs 1,945 on the BSE, as compared to 0.23% decline in the S&P BSE Sensex. A combined 74,056 shares changed hands on the counter on the BSE and NSE so far.