Wheels India reports 6% rise in Q1 net profit as CV demand rises

Senior executive says 'early signs of slowdown in global economy'

Wheels India on Tuesday reported a 6 per cent rise in net profit at Rs 10.7 crore for the first quarter of Financial Year 2022-23, compared to Rs 10.1 crore same time last year.

The wheelmaker’s revenue for the April to June quarter increased to Rs 1057.1 crore, compared to Rs. 675.1 crore in the same quarter last year. “The demand for trucks, agricultural tractors and passenger vehicles in India was healthy, albeit with semiconductor shortages affecting some segments. There was a notable growth in the CV [commercial vehicles] segment from the low base of the previous year,” said Srivats Ram, managing director at Wheels India.

“While, there remain prospects for growth in exports, there are early signs of slowdown in the global economy,” he said. In terms of the challenges faced, Ram said, “In the industrial component segment, there were significant additional logistical costs that were incurred to meet customer schedules.”

The company manufactures wheels for trucks, tractors, passenger vehicles and construction equipment. It also makes air suspension systems for trucks and buses, and industrial components for the construction and windmill industry. The company has manufacturing plants in Tamil Nadu, Maharashtra, Uttar Pradesh and Uttarakhand.