TVS Group company Wheels India has reported an eight per cent increase in its net profit at ₹18.40 crore for the quarter ended March 31, 2017, compared with ₹16.97 crore in the year-ago period.

Revenues grew by 10 per cent to ₹557.49 crore from ₹508.04 crore.

For the year ended March 31, 2017, its net profit grew by 48 per cent at ₹59.31 crore compared with ₹39.99 crore in 2015-16. Revenues stood at ₹2,176 crore against ₹1,989 crore, posting an increase of nine per cent.

“Though it was a satisfying year, we didn’t have the growth to the extent of the industry. The air suspension business and the windmill business saw good growth. Other than the non-wheel business, there was reasonable growth in the domestic agricultural tractor sector also,” said Srivats Ram, Managing Director.

Wheels India expanded its presence in the non-wheels segment with the business now contributing over 15 per cent of the revenue and this is likely to increase in the coming years. Over 50 per cent of the revenue growth in FY-17 came from the non-wheels business.

“In 2017-18, we expect reasonable growth in the car, agricultural tractor and construction equipment segments in India. The commercial vehicle industry, medium and heavy commercial vehicle, in particular, may be marginally negative given the “pre-buy” prior to the BS-IV changeover,” said Ram.

The company has made a sizeable investment in capacity expansion both for aluminium wheels and wind energy components in the past one year and this is expected to reflect in revenue growth this year.

The board has recommended a final dividend of ₹8 per share. It had declared an interim dividend of ₹5 per share earlier.

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