Wheels India Q2 Profit More than Doubles to Rs. 11 crore.

TVS Group Company, Wheels India Ltd’s Q2 profit doubles to Rs. 10.98 crore on year on year (YoY) basis. It earned a profit of Rs. 5.14 crore in the corresponding quarter last year, reflecting a rise of 114 per cent for Q2.

Net revenue witnessed a rise of 19 per cent from Rs. 417 crore to Rs. 496 crore in Q2 FY12, mainly led by a strong growth in the export market.

In terms of half-yearly results, net profit stood at Rs. 18.17 crore, a growth of 134 per cent, while total revenues increased by 19 per cent to Rs. 956 crore from Rs. 802 crore in the first half of last year.

In the second quarter, Wheels India entered into a technical agreement with Topy Industries, a Japanese steel wheel manufacturer, towards process, design and development of steel passenger car wheels. The company said that the agreement will ensure early stage development for global platforms.

Commenting on the first half performance, Srivats Ram, Managing Director, Wheels India Ltd., said, “Almost 30% of the sales growth contribution in Q2 came from the exports business with a strong traction for mining truck wheels.”

While over 80 per cent of the company’s business comes from the domestic Indian market, the company exports wheels for off-road construction equipments and agricultural applications to Japan, Korea, US, Brazil, Belgium, South Africa, China and Indonesia.

On the outlook for the second half of the year, Srivats Ram said, “While exports should remain strong for the second half, we expect the domestic automotive sector to revive in the next calendar year.”

The company, that makes steel wheels, also plans to increase its capacity to 15 million wheels. It has announced an investment of Rs. 70 crore this year, with a significant part of this capex going towards expanding our presence in the exports market.

Source : profit.ndtv.com