 "Image courtesy: Wheels India")
Automobile wheel manufacturer Wheels India Ltd has reported a net profit of Rs 24.8 crore during the quarter ending March 31, 2023, the company said on Friday.
During the corresponding quarter of the previous year, it had registered a net profit of Rs 27.9 crore.
For the financial year ending March 31, 2023 the company registered net profit of Rs 65.2 crore as against Rs 79.8 crore in the previous year.
The board of Wheels India, which met on Thursday, has recommended a final dividend of Rs 3.97 per share.
Commenting on the company's financial performance, its MD Srivats Ram said, "We registered significant growth in the air suspension division during FY2023. The CV and Earth Mover Wheel Business also did well in FY23."
"Machining of large castings which was commissioned in September 2022 was ramped up towards the end of FY2023," he said.
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Speaking of the company's outlook, Ram said it has earmarked Rs 200 crore as capital expenditure this year towards ramping up production.
The city-based company had allocated Rs 143 crore during the last financial year to meet its capex.
"Wheels India will be investing Rs 200 crore in capex this year in a gradual ramp up of production in CV, tractor, aluminum wheels and windmills machining segments," Ram said.
The cast aluminum segment is looking very strong with the first supplies to the first original equipment manufacturer taking place this month, he said.
Ram said the company has made reasonable inroads in the aftermarket segment in the domestic market and has reached close to 5 per cent market share to overall business.
"It is the first time it has reached such a level. There is a certain amount of positivity in the domestic market. CV was quite strong in Q4 and we are continuing to see some momentum this year," he said.
On exports, he said the company is looking at double-digit growth in overseas business this year, though there is uncertainty in the overall global environment.
"We are building on our existing relationships with global customers and getting into new platforms. Overall this year looks promising on the exports front," he said.
(Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)
