Chennai, Nov 6 (PTI) Steel wheels manufacturer Wheels India has clocked net profits at Rs 25.85 crore for the second quarter ending September 30, 2017. Also Read - 'State Heading Towards Health Emergency', Gujarat HC Initiates Suo Motu PIL Over Corona Situation
The city-based TVS Group company had registered net profits at Rs 12.42 crore during corresponding period of last year. Also Read - 'Tika Lagao, Beer Le Jao': This Gurgaon Restaurant is Offering Free Beer to People Who Show Their Vaccine Card
For the half year period ending September 30, 2016 net profits of the company stood at Rs 39.39 crore as against Rs 26.79 crore registered during year ago period. Also Read - 'Vaccine Lagwao, Sona Le Jao': Women Get Gold Nose Pins For Taking COVID-19 Vaccine in This Gujarat City!
Total revenue of the company for the second quarter ending September 30, 2017 grew to Rs 606.72 crore from Rs 589.31 crore registered during corresponding period of last year.
For the six month period ending September 30, 2017 total revenue were at Rs 1,219.62 crore as against Rs 1,166.16 crore registered during same period of last year.
Revenues of the company were not comparable as revenues for the second quarter ending September 30, 2017 is net of Goods and Service Tax while the revenues of second quarter ending September 30, 2016 included excise duty, the company said in a statement.
“Sale of wheels to construction equipment and agricultural tractor manufacturers have driven the growth in the first half of the year.”, company, Managing Director, Srivats Ram said.
“The exports business improved during the first half of the year on theback of the growth in the mining segment. The one time profit on slump sale of the passenger car steel wheel business has also constributed to the growth in profits”, he said.
Over 50 per cent of the company’s revenue contributed from automotive wheels for cars, commercial vehicles and tractors.
The balance was contributed from wheels/components for construction and mining equipement, air suspension for commercial vehicles and components for energy equipment.
Referring ot the joint venture with Japanese car wheel manufacturer, Topy Industries, he said, the joint venture just completed the groundbreaking ceremony for a new plant at Vanod, Gujarat.
Topy Industries has picked up 26 per cent stake in WIL Car Wheels Ltd (WCWL) with Wheels India Ltd holding the balance 74 per cent.
The companies plan to invest Rs 42 crore at the facility which will have capacity to manufacture 1.50 million passenger car steel wheels, he said.
Stating that the capacity utilisation has gone up indicating strong demand in all the company’s business segments, he said, “the prime driver of growth has been the domestic business”.
“We are bringing our capex (capital expenditure) plsna.”, he said, adding the growth prospects for exports business was looking strong.
“We are very positive on tractors, construction equipment and passenger cars business for the second half (of the financial year)”, he added.
On the outlook for the year, he said, “a reasonable monsoon and the Government’s continued focus on infrastructure will enable the company to maintain performance in the second half of the year, despite a slowdown in the windmill industry”.
This is published unedited from the PTI feed.