Wheels India to invest Rs 37 cr this year additionally to service global demand

For the half year ended 30 September, 2021, Wheels India saw its net profit swell to Rs 31.3 cr as compared to a loss of Rs 30.8 cr in the H1 of the previous year. Revenues for the half year ended 30 September, 2021 went up to Rs 1585.8 cr as compared to Rs 722.9 cr registered in the H1 of the previous year. 

Srivats Ram, MD, Wheels India, said “The quarterly sales growth on a year on year basis was across all industry segments.” 

Exports represented 25 pc of sales for the quarter. Srivats also said, “There is some sign of improvement in the commercial vehicle segment from a low base in the previous year. Export schedules are not affected by the semi-conductor shortages as the segments the company serves are not affected by this. We are making further investments to service export requirements in the coming year. There is a concern that rising commodity prices continue to be a challenge.” 

Noting that Q2 marked the return to normality, he said there was reasonable volumes across segments. “We have seen six continuous quarters of growth in exports. CV is showing signs of life and there is definitely some improvement in LCV and ICV segments. We have cleared a further capex investment of Rs 37 cr to enable service global demand in the construction equipment and windmill segments. At the beginning of the year, we planned a capex of Rs 99 cr and this is in addition to that. This increase in capex is driven by demand which has been in excess of what we expected,” he sought to point out.