Wheels India Ltd. (WIL) has planned capital expenditure of ₹200 crore for FY24 for a gradual ramp up of production, said the company’s MD Srivats Ram.
Last year, capex was trimmed to ₹143 crore to meet the rising interest cost burden and the huge inventory pile-up on cancellation of orders by a US supplier.
“These are all one-time events. This year, we are not making any big-bang investment. The capex is for gradual capacity augmentation of commercial vehicles, tractors and aluminium wheels & wind mill machining segment’s next phase growth plans,” he said.
The auto components maker, meanwhile, reported a drop in its standalone net profit for the quarter ended March to ₹25 crore from ₹28 crore over the year earlier period.
Revenue from operations was up 6% to ₹1,169 crore, while cost of material consumed declined to ₹849 crore from ₹815 crore. The board declared a dividend of ₹3.97 per share.
“WIL posted significant growth in air suspension division. Commercial vehicle and earth mover wheel business also did well. Machining of large castings, which was commissioned in September 2022 was ramped-up towards the end of FY23,” he said.
On his outlook for the future, he said that the domestic market was expected to witness single-digit growth while export markets would definitely witness double-digit growth. Overall this year looks promising on the exports front, he said.
