Wheels India Ltd. Managing Director Srivats Ram
Wheels India Ltd. (WIL) has planned a capital expenditure of ₹200 crore for FY24 for ramping up production gradually, the company’s MD Srivats Ram said.
Last year, capex was cut to ₹143 crore to meet the rising interest cost burden and the huge inventory piled up with the cancellation of orders by a US supplier.
“These are all one-time events. This year, we are not making any major investments. The capex is for gradually expanding the capacity of commercial vehicles, tractors and aluminum wheels and wind mill machining segments next year. growth plans,” he said.
The auto parts maker, meanwhile, reported a decline in its standalone net profit for the quarter ended March to ₹25 crore from ₹28 crore in the previous year.
Income from operations rose 6% to ₹1,169 crore, while cost of material consumed declined to ₹849 crore from ₹815 crore. The board declared a dividend of ₹3.97 per share.
“WIL posted significant growth in the air suspension division. Commercial vehicle and earth mover wheel business also did well. Machining of large castings, commissioned in September 2022 was ramped-up towards the end of FY23,” he said.
On his outlook for the future, he said that the domestic market is expected to witness single-digit growth while export markets are certain to witness double-digit growth. Overall this year looks promising on the export front, he said.