New Delhi: Wheels India has reported
double-digit growth in bottomline and single-digit increase in topline for the
March quarter as well as for the full year amid fragmented recovery in the
automotive market.
Steel wheels manufacturer Wheels
India has registered a 151 percent growth in the net profit for the quarter that
ended on March 31. For the quarter ended March 31, the auto components firm
reported net profit of Rs 17 crore, compared with Rs 7 crore in the year-ago
period. Revenues grew seven percent to Rs 536 crore (Rs500 crore).
“There was substantial revenue growth
in Q4 that resulted in increased profitability for the quarter. But there was
some higher costs relating to foreign exchange losses in Q4 of 2014-15. Hence
the two quarters are not strictly comparable,” said Srivats Ram, MD. For the
full year ended March 31, the company’s net profit grew 34 percent at Rs40
crore (Rs30 crore). Revenues grew two percent to Rs 2,018 crore (Rs 1,982
crore).
Strong recovery in the commercial
vehicle sector aided the company’s topline during the year. The company gets
half its revenues from wheels for commercial and passenger vehicles. Revenue
growth was in low single digit due to poor offtake in other segments such as
tractors, passenger vehicles and exports. Its non-wheels business contributed
around 15 percent of the revenue. Capacity utilisation is improving
significantly in the commercial vehicles (CV) segment, said Ram. “We will
invest around Rs 60-70 crore this year in debottlenecking of capacities,
especially in CV, and towards automation and improving cost efficiencies,” he
added.
He also said lift axles was seeing
strong growth from April and will be an important driver of growth in addition
to CV this fiscal.
However, tractor revival is
important. If there is good monsoon, there should be good growth in the tractor
segment this year, after successive years of de-growth, he said. The board has
declared a final dividend of Rs 5.50 per share.
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