Wheels India Ltd's Impressive Q1 Profit Surge

Wheels India Ltd reported a net profit of Rs 25.37 crore for the April-June 2024 quarter, doubling its profit from the same period last year. The surge was attributed to cost control measures, product mix changes, and a slight improvement in the commercial vehicles business.

Leading truck, tractor, and passenger vehicle wheel manufacturer Wheels India Ltd has reported a net profit of Rs 25.37 crore for the April-June 2024 quarter. This has been driven by cost control measures and a strategic change in the product mix, according to a top company official.

The Chennai-based company had registered a net profit of Rs 13.22 crore in the same quarter the previous year. Managing Director Srivats Ram stated that the robust profit was due to an improved mix of products, heightened cost control efforts, and an uptick in the commercial vehicles business.

The company's total revenues for the quarter stood at Rs 1,088.20 crore, compared to Rs 1,133.02 crore during the corresponding quarter last year. Additionally, Wheels India has allocated Rs 225 crore for capital expenditure in the current financial year, focusing on expanding cast aluminium and windmill castings production.

The production capacity of aluminium wheels is set to rise from 25,000 to 40,000 wheels per month in the second half of the year. Ram projected that, despite a muted outlook for domestic and export business growth, the hydraulic cylinder and cast aluminium wheel segments will see growth in the latter half of the year. Wheels India operates manufacturing units in Tamil Nadu, Maharashtra, Uttar Pradesh, and Uttarakhand.

(With inputs from agencies.)