Wheels India zooms 4% after strong Q4 results; Revenue rises to Rs853cr on healthy exports

Chennai headquartered wheel manufacturer Wheels India Ltd., has registered a Net Profit of Rs25.5cr for the Q4 ended 31s March 2021 as compared to Rs4.6cr registered in the same period the previous year.

The Company registered revenues of Rs853.3cr for the Q4 ended 31 March 2021 as compared to Rs544.7cr registered in the corresponding quarter of the previous year.

The Board has recommended a dividend of Re.1.00 per share.

For the full year ended 31s March 2021, the Company registered Net Profit of Rs6.7cr as cormpared to Rs54.1cr registered in the year ended 31st March 2020. The Company registered revenues of Rs2215.5cr for the year ended 31s March 2021 as compared to Rs2438.7cr in the corresponding period of the previous year.

In the third quarter of last year, Wheels India began its first shipment of cast aluminum wheels to the US from its newly commissioned plant in Thervoy Kandigai near Chennai. The plant has an annual capacity of 7.5 lakh wheels.

The Company exports around 25% of its sales and has a diversified global customer base with over 40 customers.

Commenting on the performance, Srivats Ram, MD, Wheels India Ltd., said "While the first quarter of last year was a washout due to the national lockdown, there was strong demand in the latter part of the year with a recovery in most of our business segments by the fourth quarter. While the domestic tractor business showed strong growth in the last three quarters, we saw growth in export business in H2.

On the outlook for FY22, Srivats said, "While we have strong export demand for products, the domestie business and to some extent execution of exports will depend on the state of lockdown in the regions where our plants are."

At around 3:15 PM, Wheels India was trading at Rs512.15 per piece up by Rs19.8 or 4.02% on Sensex.