Wheels India Ltd. (WIL) has scaled up capital expenditure plans for the current fiscal by 37% to ₹136 crore to help service strong export demand, after the company reported profit more than doubled last quarter.
“We have seen six continuous quarters of growth in exports; this trend... in exports is likely to continue,” said Srivats Ram, MD.
“Our exports [now] constitute 25% of total sales. We expect it to inch towards 30% by the end of the current fiscal. Demand outlook for exports and domestic markets is broadly positive,” he added. The auto parts maker had in March pegged capital expenditure at ₹99 crore; this was raised due to a rise in global demand in the construction equipment and windmill segments.
WIL was facing challenges from the rising costs of aluminium and steel, and fuel prices, Mr. Ram said.
Second-quarter profit jumped 186% to ₹21 crore, while revenue rose 78% to ₹911 crore.