Wheels India, reported an increase of 8.4% in its standalone net profit to ₹18.40 crore for the quarter ended March 2017 as against ₹16.97 crore in the year-earlier period. Revenue for the quarter rose to ₹557.49 crore from ₹508.04 crore.
Net profit rose 48.3% in 2016-17 to ₹59.31 crore (₹39.99 crore) on a total revenue of ₹2,176 crore (₹1,989 crore). The board recommended a final dividend of ₹8 per share.
On the impact of BS-IV norms on the commercial vehicle segment, Srivats Ram, managing director, Wheels India, said the demand could be sluggish in the first quarter of this year.“This is mainly due to the pre-buy in March 2017 prior to the BS-IV change-over. Also, the supply chain is not fully geared up to meet the sudden ramp-up of the new emission standard. By June, we should be able to meet the supply chain part.”
To a question, he said the company had planned an investment of over ₹80 crore this year. “Last year was a year of relative growth. In 2017-18, the revenue growth will be in line with the last year’s and better than the last five years,’’ he said.
Asserting that the commercial vehicle business would remain the core of the company, he said, “we will continue to expand our product portfolio in newer business segments.’’
He expected the expansion in the forge aluminium segment to be in place in the second quarter. Consequent to this expansion, exports would grow with the thrust in this space, he added.
“The U.S. is the largest overseas market for us, and we will continue to focus on this market. Japan and Korea too are important exports market for us,’’ he said.
