Wheels India, a company manufacturing wheels for trucks and passenger vehicles, has registered a net profit of Rs 12.58 crore for the October-December 2023 quarter, attributing it to the impact of low-demand tractor and mining wheel segments, the company said on Tuesday.
The Chennai-headquartered company registered a net profit of Rs 15.36 crore during the corresponding quarter of the last financial year.
Revenues during the quarter under review grew to Rs 1,131 crore driven by a strong recovery in exports, as compared to Rs 1,018 crore registered in the same period of last year. Export revenues stood at Rs 307 crore for the quarter under review as compared to Rs 205 crore recorded in the corresponding quarter of last year.
"The profits in Q3 were impacted by low demand in the tractor and mining wheel segments and by the floods that affected our Padi plant in the first week of December 2023. There was no power for a week at the plant and we were not able to run it to full capacity in that period," company MD Srivats Ram said.
On the rise in exports during the October-December 2023 quarter, he said, "Despite slowing down of the economy in some geographies, we managed to grow our exports for the fourth consecutive quarter. When compared to Q3 of last year, growth came in the machining of castings for windmills and hydraulic cylinders, apart from aluminum wheels," he said.
Regarding the outlook, Ram said, "While the global economy is likely to slow down next year, we are hopeful of continuing to grow our exports. On the domestic front, we expect the Indian economy to show reasonable growth post elections."