CHENNAI: For the first time, the exports of Wheels India crossed Rs 1,000 cr in a year. From a 16% contribution just over five years ago, its exports soared to 27% of sales in the year ended March 31, 2022. The company’s capex plans would see an investment of Rs 155 cr this year.
The city-based steel wheels’ manufacturer saw a 9% rise in its net profit for the Q4 ended March 31, 2022 at Rs 27.8 cr compared to Rs 25.5 cr registered in the corresponding quarter of the previous year. Revenues for Q4 ended March 31, 2022 went up 29% to Rs 1101.3 cr against Rs 852 cr registered in the same period of the previous year.
Srivats Ram, MD, Wheels India, said, “Revenue growth was driven by successive quarters of export growth, where we crossed a significant milestone of Rs 1,000 cr for the year.”
The company registered a net profit of Rs 79.8 cr for the full year ended March 31, 2022 compared to Rs 6.7 cr registered in the year ended March 31, 2021. Revenues for the year ended March 31, 2022 went up 67% to Rs 3686.7 cr against Rs 2211.7 cr registered in the same period of the previous year.
The Board has recommended a dividend of Rs 8.30 per share.
In FY21, Wheels India began production of cast aluminum wheels from its plant in Thervoy Kandigai, near Chennai. Earlier this month, it inaugurated a new plant for machining of large wind turbine castings in this location. It will be investing a capex of Rs 155 cr this year, part of which will go into expansion of construction equipment business and aluminum wheels. It has already invested Rs 75 cr in the new plant for machining of large wind turbine castings. This year, the company will invest an additional Rs 25 cr in that plant.
Srivats said “We are investing as we are seeing clear opportunities and there is customer demand on hand. The fact that we have invested well over Rs 150 cr in the cast aluminum plant in the last year or two and our current investment of Rs 100 cr in the new plant for machining of large wind turbine castings shows that we are making large investments and that we are optimistic about growth in these new areas from zero base.”
Expecting a positive trend in the CV segment seen in Q4 of FY22 to sustain this year, benefitting both wheel and suspension business, he said, “while the demand outlook is positive, there continues to be industrial inflation. The positive trend of export growth is likely to continue this year.”
The company had gained from China de-risking strategy of global companies with cast aluminum business being an opportunity arising out of that, he said On the exports market, Srivats said there is strong demand from Japan, Korea, Europe and North America. With the exit of the JV partner two years ago, the restrictions on expanding into segments and geographies have been removed. Now, the company has been aggressively foraying into newer segments and geographies that they could not do so earlier, he added.