Wheels India’s Q2 net up at Rs 21.92 crore

CHENNAI: Wheels India Ltd., has registered a substantial rise in its net profit for the Q2 ended September 30, 2024 at Rs 21.92 crore as compared to Rs 5.24 crore registered in the corresponding quarter of the previous year.

Last year Q2 was impacted due to one off expenses, notably a one-off charge for pre-delivery inspection charges.

The company registered revenues of Rs 1,085 crore for the Q2 ended September 30, 2024 as against Rs 1,189 crore reported in the Q2 ended September 30, 2023.

For the half year ended September 30, 2024, it recorded a significant rise in its net profit at Rs 47.29 crore compared to Rs 18.46 crore registered in the corresponding first half of the previous year.

The company registered revenues of Rs 2,174 crores for the first half ended September 30, 2024 as compared to Rs 2,322 crore registered in the H1 of the previous year. On the profit growth in Q2, Srivats Ram, MD, Wheels India said, “A favourable product mix, notably increase in machining of windmill castings, productivity improvements and cost control measures have resulted in a good growth in profit for the second quarter in succession. These measures will continue into the second half and we are hopeful of maintaining the profit growth in this trajectory, in the current year.” Srivats attributed the revenue dip due to drop in CV and tractor wheel requirements in Q2. “There has been a significant drop in lift air suspension systems business for trucks as there is a move in the market away from multi-axle vehicles and towards trailers.”

“On exports as we had indicated earlier, the slowdown in the US and EU has not only resulted in cut in schedules but also a delay in introduction of new products as customers had to wait to exhaust stocks,” Srivats said.

Exports were lesser by around Rs 50 crore from Rs 307cr in Q2 last year to Rs 258 cr in Q2 this year. “We expect a revival in exports in Q4 this year and for that to continue into Q1 next year,” he added. The company plans to spend its capex of around Rs 225 crore towards expansion of the machining of windmill castings, agricultural wheels, cast aluminium wheels and hydraulic cylinders business.