Wheels India to invest Rs 155 cr for expansion of construction equipment and aluminum wheels business in FY23


Auto component maker Wheels India has drawn up plans to invest about Rs 155 crore in expanding construction equipment and aluminum wheels business in the current fiscal year, according to a company official .

The truck and bus wheel maker, headquartered in Chennai, would make additional investments of Rs 25 crore to the Rs 75 crore it has already made at its new factory at Thervoy Kandigai in neighboring Tiruvallur district for the machining of large wind turbine castings.

According to the company’s Managing Director, Srivats Ram, Wheels India recorded a 9% increase in net profit in the quarter ending March 31, 2022 to Rs 27.8 crore from Rs 25.5 crore recorded the corresponding period of last year.

Revenue in the quarter under review rose to Rs 1,101.3 crore from Rs 852 crore recorded in the same period last year.

Net profit for the year ending March 31, 2022 rose to Rs 79.8 crore from Rs 6.7 crore recorded last year.

Revenue for the year ending March 31, 2022 rose to Rs 3,686.7 crore from Rs 2,211.7 crore recorded a year ago.

The board which met here on Friday recommended a dividend of Rs 8.30 per share.

The company, in a statement, said it surpassed the Rs 1,000 crore milestone in exports in the year ending March 31, 2022. five years ago, increased to 27% in the year ending March 31, 2022. 2022.

Wheels India said it started production of aluminum wheels from its Thervoy Kandigai plant in the year ending March 31, 2022.

“Early this month, the company also inaugurated a new machining plant for large wind turbine castings in Thervoy Kandigai,” he said.

On the company’s financial performance, Ram said, “Revenue growth was driven by successive quarters of export growth where we reached a milestone of Rs 1,000 crore for the year.”

“We expect the positive trend in the commercial vehicle segment seen in the fourth quarter of fiscal 2022 to continue this year, benefiting both our wheel and suspension businesses,” he said on the outlook. of the company.

”Although the outlook for demand is positive, industrial inflation continues to exist. The positive trend in export growth is expected to continue this year,” he said.

(With PTI inputs)

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Posted: Saturday, May 21, 2022, 8:03 PM IST


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