Wheels India Limited (WIL) has increased its capital expenditure plans by 37% to ₹136 crore for the current fiscal to help support strong export demand after the company reported more than double profit in the previous quarter.
“We have seen an increase in exports for six consecutive quarters; This trend in exports is likely to continue,” said Shreevatsa Ram, MD.
“Our Export” [now] 25% of the total sales. We expect it to reach 30 per cent by the end of the current financial year. The demand outlook for the export and domestic markets is broadly positive,” he said. The auto parts maker had estimated capital expenditure in March at ₹99 crore; This was raised due to the increase in global demand in the construction equipment and windmill sectors.
Shri Ram said that WIL was facing challenges from rising cost of aluminum and steel and fuel prices.
Q2 profit jumped 186% to ₹21 crore, while revenue jumped 78% to ₹911 crore.
.