Wheels India Q4 net profit up 9% to Rs27.8 crore
Chennai-headquartered steel wheel maker Wheels India Ltd. reported a 9% increase in net profit for the fourth quarter ended March 31, 2022 to Rs. 27.8crores from Rs. 25, 5 crores recorded in the corresponding quarter of the previous year. Revenue for the fourth quarter ended March 31, 2022 increased by 29% to Rs. 1,101.3 crore from Rs. 852crore recorded in the same period of the previous year.
The company recorded a net profit of Rs. 79.8 crores for the full year ended March 31, 2022 compared to Rs. 6.7 crores recorded during the fiscal year ended March 31, 2021. Revenues for the ended March 31, 2022 increased by 67% to Rs 3,686.7 crore from Rs 2,211.7 crore recorded in the same period of the previous year.
The company’s board has recommended a dividend of Rs. 8.30 per share.
For the first time, exports crossed the Rs. 1000crores mark in a year. The contribution of exports, which was around 16% just over five years ago, increased to 27% of sales in the year ended March 31, 2022.
In FY21, Wheels India had started production of cast aluminum wheels from its factory in Thervoy Kandigai near Chennai. Earlier this month, the Company inaugurated a new machining plant for large wind turbine castings in Thervoy Kandigai.
Commenting on the performance, Srivats Ram, MD, Wheels India said, “Revenue growth was driven by successive quarters of export growth where we achieved a milestone of Rs. 1,000 crores for the year.
Regarding the outlook for the year, Srivats said, “We expect the positive trend in the CV segment seen in the fourth quarter of FY22 to continue this year, benefiting both our wheel and suspension businesses. While the demand outlook is positive, industrial inflation continues to exist. The positive trend in export growth is expected to continue this year.
Wheels India Ltd. is a leading manufacturer of wheels for trucks, buses, agricultural tractors, cars and utility vehicles representing just over 50% of company sales; the balance from the wheels and structures of construction machinery; air suspension systems for trucks and buses; and components for wind turbines and railway bogies with manufacturing plants in Tamil Nadu, Maharashtra, Uttar Pradesh and Uttarakhand.