Leading auto parts major Wheels India Ltd plans a capex of ₹155 crore this fiscal as it seeks to take advantage of strong demand potential in some of the business segments amid a rise in the industrial inflation and uncertainty caused by the Russia-Ukraine war.

Srivats Ram, Managing Director, Wheels India, said amid challenges by way of unprecedented steel price increases (to the extent of ₹400 crore of the topline over 12 months), there were some milestones. For the first time, the company’s exports crossed ₹1,000 crore mark in FY22, which saw the company recording ₹80 crore profit (₹7 crore in FY21) and posting revenues of ₹3,687 crore (₹2212 crore).

The board recommended a dividend of 83 per cent (₹8.3 per share). “This percentage takes us to pre-Covid and pre-commercial vehicle slowdown period levels,” he added.

Earlier this month, the company opened a new factory for machining large wind turbine castings in Servoikandigai near Chennai. We have already invested Rs 7.5 billion on this site and plan to invest another Rs 2.5 billion this year.

Srivats Ram said that the investment of Rs. 15.5 billion proposed in 2011 will be spent on expanding the construction equipment manufacturing related business, completing the Phase 1 investment in aluminum wheels and Servoicandigai site, and partly maintenance cost. Said that it will be devoted to.

According to Lam, Wheels India is a leading supplier of all major construction machinery OEMs. Demand for the CE segment is very strong as most countries, including India, have spent the post-covid period on infrastructure development as part of their economic recovery efforts. Demand for CE is still very strong and may continue. However, due to China’s Zero-COVID policy, it is also affected by supply chain problems. He added that demand in the wind segment is stable.

Export momentum will continue in 2011, Wheels India said, benefiting from the risk mitigation strategies of global Chinese companies, from which the cast aluminum business is an opportunity. However, we are also expanding transactions with existing customers.

In addition, the withdrawal of JV partners two years ago lifted restrictions on expansion into segments and regions, and the company is aggressively expanding into new segments and regions that were previously impossible.

The company reported net income of 2.8 billion rupees, an 8% increase, compared to 2.6 billion rupees in the March 2021 quarter. Revenue increased 29% to 11,01.3 chlores (852 chlores).

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