Wheels India reported good set of numbers. As management communicated in previous concalls margin improved to 8% in Q4FY24. 1% being contributed by discount by customers which normally gets accumulated in Q4.
Some points from concall
- Expecting flat growth in FY25. Possible to grow if market situation improves
- Planned capex of in excess of 200Cr across Wind components machining, cast aluminum wheels, earth moving & tractors, hydraulic cylinders and CV. All capex to be from internal accruals. If there is any moderation of capex, then 35-40Cr of debt to be retired.
- Business opportunity in Railways - Looks not really focused here. They don’t directly wok with railways. They supply to customers like Alstom
- Cast alloy wheels supply to domestic customer to start from Jun-24. Ramp up might happen in Q2 or Q3 of FY25. Since the ramp up has not happened, I believe this segment is not contributing to bottom line yet.
- Machining / Fabrication of Wind castings - Supplies to both domestic and exports. Ramp will be inline with ramp of customers.
- Monetizing of any assets / or rights issue to reduce the burden of interest - There is no non - core assets as of now to monetize. Will look for rights issue only for greenfield capex (as and when it happens).
Outlook for FY25:
Press release:
Q4FY24 - Investor PPT: