Wheels India Q4 net profit rises to Rs 34.35 crore for fiscal 2011-12

CHENNAI: TVS Group company Wheels India today announced 39 per cent increase in net profit at Rs 34.35 crore for fiscal 2011-12 compared to Rs 24.64 crore in the year ago period, as it placed its bet on passenger car segment to propel its growth in FY 2013.

The company's revenue grew by 22 per cent at Rs 2078 crore, company managing director Srivats Ram said.

Announcing the results at a press conference here, he said thrust on exports and non-wheel business besides "strong operational focus," helped in achieving growth despite the industry's single-digit growth trends.

One third of revenue came from wheels for commercial vehicle segment while passenger car and tractor segments shared 20 per cent each. Construction equipment and mining sector (15 per cent) and air suspension systems with a share of five per cent constituted the rest, he added.

On the company's outlook for FY 13, Ram said growth prospects in tractor and truck segments were a "cause for concern," as he said GDP growth would remain at similar levels of around 6.8 per cent.

"However, we are on a number of the new models in the passenger car segment and we are hopeful of achieving reasonable growth. Our focus on exports will continue and overall it will be a year of consolidation for us," he added.

He also expressed concern over the "volatility of the rupee," and said it was much similar to tax reforms, "which ends up at hitting at more ways than one."

"Managing the rupee volatility will continue to be a challenge as it has already hit us," he said.

To a question, he put the capital expenditure prospects at around Rs 80 crore, likely to be spent on construction and mining equipment and passenger cars.

He said during the year, Wheels India had entered into an agreement with Japan-based Topy Industries which covers process, product design and development catering to Asian vehicle manufacturers.