Wheels India eyes new orders to sustain export growth in current fiscal

Wheels India Ltd. (WIL), which is eyeing 20% growth in exports in FY24, expects to win orders for light and medium construction wheels; larger tractor wheels, and fabrication and hydraulic cylinder business, managing director Srivats Ram told analysts in a call.

“We expect to win these orders from Q4 of this year. These (large tractor) wheels are used in Europe and North America. So these are three areas where we see export potential,,” he said.

WIL is also looking to grow its fabrication and hydraulic cylinder business in the next fiscal.

Asserting that WIL needed new orders to maintain the growth momentum in exports, Mr. Ram said: “While we had strong growth in export this year, next year would be challenging and we may need new businesses just to ensure we show some growth and do not degrow exports.”

During the first half, WIL was able to manage to post decent growth in exports volume, despite the slowdown in Europe. Asian markets were strong, especially in Korea, Japan and even Thailand.

“LATAM (Latin America) has been muted, but we have made a fair amount of ground with some of these Original Equipment Manufacturers,” he said.

Regarding the demand for the bus air suspension market, Mr. Ram said it is strong currently and would get stronger in the next two quarters.

On the mining side of the construction wheels, WIL was facing some challenges, he said, adding that there has been a cut in schedules notably in Q3 as one of the company’s large customers were looking at minimising inventory in December. It may affect Q3 production.

“We expect the commercial vehicle market to be better and air suspension to get stronger,” he said, warning that the steel wheel market for small passenger car is muted, and that WIL would carry out plant related rationalisation soon.