Wheels India, an automotive components manufacturer, has posted impressive financial results for the first quarter of the fiscal year 2023-24 (Q1FY24). The company recorded a substantial 25% rise in its net profit, reaching just over INR 13 crore, as compared to just under INR 11 crore in the same quarter of the previous year.
This remarkable growth can be attributed to a notable 7% increase in revenue for the quarter, which amounted to INR 1,124 crore, compared to INR 1,053 crore in the corresponding period last year. The rise in net profit and revenue indicates a strong performance, especially in the context of a relatively muted domestic market.
One of the key contributors to Wheels India’s success was the robust performance of its export segment. Exports accounted for 25% of the company’s sales during Q1FY24, demonstrating the company’s ability to tap into international markets and cater to global demand. Furthermore, there was a surge in demand for buses in the latter part of the quarter, adding to the company’s overall sales growth.
Srivats Ram, the Managing Director of Wheels India, expressed his satisfaction with the Q1 results and emphasized the potential for the hydraulic cylinder business. The recent approval by the National Company Law Tribunal (NCLT) to merge Sundaram Hydraulics with Wheels India opens up new growth opportunities in this sector. Srivats Ram mentioned that the company is well-positioned to capitalize on this development and expects positive outcomes from the hydraulic cylinder business, particularly with their existing customer base.
Looking ahead, Srivats Ram shared an optimistic outlook for the company. He anticipates a pickup in the domestic wheel business after the monsoon season, projecting growth in the second half of the fiscal year. This forecast is based on the expectation of an improved business environment and increased demand in the domestic market post-monsoon.
The focus on exports and the potential of the hydraulic cylinder business are likely to drive further growth and enhance the company’s position in the automotive components industry.
