Wheels India Q2 results: Net profit at Rs 5.24 crore

Wheels India Q2 results:  Wheels India, manufacturer of wheels for trucks, tractors, passenger vehicles and construction equipment has reported a net profit for the July-September 2023 quarter at Rs 5.24 crore.

The city-based company registered a net profit of Rs 14.53 crore during the corresponding quarter of last year.

Commenting on the financial performance, Wheels India MD Srivats Ram said, "the Q2 profit was impacted due to one-off expenses notably a one-off charge for pre-delivery inspection charges." The amalgamation of Sundaram Hydraulics Ltd with the company has now been completed, he stated.

Net profit for the half-year ended September 30, 2023, stood at Rs 18.46 crore as against Rs 24.71 crore registered in the same period of last year. Revenues during the quarter under review rose to Rs 1,189 crore from Rs 1,104 crore registered during the same period last year.

For the six-month period ended September 30, 2023, the revenues grew to Rs 2,322 crore, from Rs 2,154 crore registered during the corresponding period of last year.

"The revenue growth was driven by exports with growth in the Asian market offsetting the slowdown in Europe," he said.

Briefing reporters, he said the company of a total Rs 250 crore capital expenditure earmarked for the current financial year, spent Rs 72 crore during the first half of the financial year and expects to spend about Rs 80 crore during the coming quarters.

He said the company plans to set up two subsidiaries, one each, in the United States and in Europe, during the current financial year, following a request made by their customers.

"These subsidiaries will comprise 2-3 members, each, and it is more of business developments and sales coordination," he said responding to a query.

On the outlook for the current financial year, he said, "We expect to see export growth in the full year, despite a slowdown in Europe. On the domestic front, we expect to see growth in the CV (commercial vehicles) and air suspension markets for the balance of the year." "Overall, while Q3 may be muted, we expect Q4 to be stronger," he added.

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