Wheels India Ltd Reports Net Profit of Rs 25cr in Q1 due to Cost Control

Wheels India Ltd has reported a net profit of Rs 25.37 crore in the April-June 2024 quarter. Due to the cost control measures and change in the product mix, an impressive growth happened in the financial gain. The company is among the leading manufacturer of wheels for trucks, tractors and passenger vehicles.

The city-based company had recorded a net profit of Rs 13.22 crore in the corresponding quarter last year.

Wheels India presently has manufacturing facilities in different states including Tamil Nadu, Maharashtra, Uttar Pradesh and Uttarakhand.

"A change in the product mix, increased focus on cost control and some improvement in the CV (commercial vehicles) business have contributed to the strong profit in Q1," Wheels India Ltd MD Srivats Ram said.

Total revenues during the quarter under review stood at Rs 1,088.20 crore, as against Rs 1,133.02 crore in the same quarter last year.

Wheels India has kept Rs 225 crore as capital expenditure for the current financial year towards taking up expansion of the cast aluminium and machining for windmill castings businesses.

The company is preparing to increase the production capacity of aluminium wheels from 25,000 wheels per month to 40,000 wheels per month in the second half of the year.

Srivats Ram added, "While the overall growth prospects on domestic and export business are muted, we expect the hydraulic cylinder business and cast aluminium wheel business to grow in the second half of the year."