Wheels India has reported a 22% drop in net profit during the second quarter of the current fiscal at Rs 8.60 crore as compared to Rs 10.98 crore in the corresponding quarter last year.
The company's turnover dropped marginally to Rs 496.95 crore in the quarter under review from Rs 499.53 crore a year ago.
Srivats Ram, managing director, Wheels India said that the company was impacted by the slowdown in the Indian economy that resulted in a 18% drop in the medium and heavy commercial vehicle market, a 5% drop in the agricultural tractor market, with a marginal growth in the car and utility vehicle market.
The exports of the economy did show growth of around 40% in first half vis-a-vis the same period last year. However this was not adequate to offset the slowdown in the domestic market. On the cost front, the company faced steep increase in energy costs due to power tariff and difficult availability of power.
