Wheels India has reported a five per cent rise in its net profit at Rs.29.74 crore for the year ended March 31, 2015 when compared with Rs.28.41 crore in the previous year. Change in product mix and currency volatility resulted in lower growth in the bottomline of this TVS group firm.
Its revenues stood at Rs.1,980 crore as against Rs.1,823 crore, posting a rise of nine per cent. Exports grew to Rs.400 crore from Rs.358 crore.
“Gains through CV (commercial vehicle) industry improvements were washed away by fall in growth (16-17 per cent down) in tractor segment. In car segment, increased use of aluminium parts had some impact on this business (Wheel India makes only steel wheels). Overall, domestic business saw a marginal growth, but exports grew strongly,” said Srivats Ram, Managing Director, Wheels India said.
However, the company reported significant growth during the year in non-wheel business, contribution of which to the topline grew to 11 per cent in 2014-15 from 8 per cent in the previous year. For the fourth quarter ended, its net profit was down at Rs.6.76 crore against Rs.8.78 crore in the year-ago period. Revenues were up three per cent to Rs.499 crore (Rs.485.27 crore).
Mr.Ram said the company would follow a cautious approach for 2015-16.
But, expected better profits, aided by change in product mix and cost control measures.
Meanwhile, the company is also examining the opportunity to make wheels for two wheeler segment. It has planned a capex of Rs.70 crore for the present fiscal.
The Board has declared a final dividend of Rs.4.50 per share.
