Wheels India clocks 2qtr net at Rs 25.85 Cr:
Steel wheels manufacturer Wheels India has clocked net profits at Rs 25.85 crore for the second quarter ending September 30, 2017.
The city-based TVS Group company had registered net profits at Rs 12.42 crore during corresponding period of last year.
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.
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 article has not been edited by Zeebiz editorial team and is auto-generated from an agency feed.)
Get Latest Business News, Stock Market Updates and Videos; Check your tax outgo through Income Tax Calculator and save money through our Personal Finance coverage. Check Business Breaking News Live on Zee Business Twitter and Facebook. Subscribe on YouTube.