Wheels India MD says company to invest Rs 155 cr in FY23

Auto component manufacturer Wheels India has drawn up plans to invest about Rs 155 crore towards expansion of construction equipment and aluminum wheels business during the current financial year, according to a company official.

The Chennai-headquartered manufacturer of wheels to trucks and buses, would make an additional Rs 25 crore investments to the Rs 75 crore it already made at its in new plant in Thervoy Kandigai in neighbouring Tiruvallur district for machining of large wind turbine castings.

According to company managing director Srivats Ram, Wheels India reported a nine per cent rise on its net profit during the quarter ending March 31, 2022 at Rs 27.8 crore as compared to Rs 25.5 crore recorded corresponding period last year.

Revenues during the quarter under review grew to Rs 1,101.3 crore from Rs 852 crore registered same period last year.

Net profit for the year ending March 31, 2022 grew to Rs 79.8 crore from Rs 6.7 crore registered last year.

Revenues for the year ending March 31, 2022 went up to Rs 3,686.7 crore, as compared to Rs 2,211.7 crore registered year ago.

The Board which met here on Friday recommended a dividend of Rs 8.30 per share.

The company, in a statement, said it surpassed milestone of Rs 1,000 crore in exports during the year ending March 31, 2022. Exports contribution that was around 16 per cent over five years ago increased to 27 per cent during the year ending March 31, 2022.

Wheels India said it commenced production of aluminum wheels from its plant in Thervoy Kandigai during the year ending March 31, 2022.

"Early this month, the company also inaugurated a new plant for machining of large wind turbine castings in Thervoy Kandigai", it said.

On the company's financial performance, Ram said, "Revenue growth was driven by successive quarters of export growth where we crossed a significant milestone of Rs 1,000 crore for the year".

"We expect the positive trend in the commercial vehicle segment seen in Q4 of FY2022 to continue this year, benefitting both our wheel and suspension business," he said on the company's outlook.

"While the demand outlook is positive, there continues to be industrial inflation. The positive trend of export growth is likely to continue this year", he said.