Wheels India net profit down 22%.

CHENNAI: Hit by the slowdown in the domestic market, especially in the medium and heavy commercial vehicles segment, the net profit of Wheels India Ltd (WIL) fell 22% in the second quarter of FY13 compared with same quarter last year.

 Net profit of the company fell to Rs 8.6 crore from Rs 10.98 crore last year, and revenues were down marginally to Rs 497 crore from Rs 500 crore.

WIL, part of the TVS Group, manufactures steel wheels for passenger cars and commercial vehicles, and steel components for the construction, mining and energy sectors.

Exports for the first half of FY13 grew 40% and contributed 19% to the overall turnover, though it didn't offset the slowdown in the Indian market.

The passenger cars segment in the first half of the year was impacted by manufacturing capacity, and could do marginally better, but the situation in the commercial vehicles segment could continue till the third quarter, managing director Srivats Ram, WIL, said.

"On an annual turnover, sales could be 2-3% less than last year based on the bearish view of the commercial sector in the third quarter and lack of optimism on exports," Ram said, adding that he doesn't see a change in demand.

The company has launched an after-market brand Wilgo, for the sale of wheels on both daily and need basis, unlike earlier when orders were bunched together for a month and then shipped. "The strategy is to focus on ensuring more interaction with retail outlets," Ram said.


Source : timesofindia.indiatimes.com