Wheels India posts 18.6 pct increase in net profit to Rs 15 crore in Q3

Steel wheels manufacturer Wheels India has recorded an 18.6 per cent rise in net profits for the third quarter ending December 31, 2018, at Rs 15.3 crore. The city-based TVS Group company clocked net profits at Rs 12.9 crore in the corresponding quarter last year.

Net profits for the nine month period ending December 31, 2018, grew by 6.88 per cent, to Rs 55.9 crore from Rs 52.30 crore registered during the corresponding period last year. Revenues for the October-December 2018 quarter went up 32.7 per cent to Rs 786 crore from Rs 591.9 crore registered a year ago.

For the nine-month period ending December 31, 2018 revenues grew by 29 per cent to Rs 2,333.8 crore from Rs 1,808.3 crore registered a year ago. The profits of the previous nine months ending December 31, 2017, includes an exception item -- profit on slump sale of its passenger car steel wheel business to its subsidiary WIL Car Wheels Ltd.

The Board of Directors Wednesday declared an interim dividend of Rs 3.25 (32.5 per cent) for each fully paid up equity share. "There was a slowing down of the car and truck segments towards the latter part of the third quarter. However, the quarter saw strong growth in export markets", Wheels India Managing Director Srivats Ram said in a statement.

The company has been expanding its presence in the non-wheels segment. Over 65 per cent of the revenue contributed from automotive wheels for commercial vehicles, cars and agricultural tractors. The balance comes from wheels, components for construction and mining, equipment and air suspension for commercial vehicles, among others. Wheels India Ltd has manufacturing facilities at five locations across the country with an overall annual capacity of 10 million wheels, the release added.

(With inputs from agencies.)