Wheels India surged by 16.42 per cent on Tuesday. The stock price rose to Rs 1,915.55 a share, up by Rs 270.20 a day after it reported that the net profit doubled to Rs 25.85 crore for the quarter ended September 2017.
A TVS Group company, Wheels India, said that its revenue rose to Rs 606.72 crore from Rs 589 crore. The company also said as part of the ongoing strategic business decision, Wheels India has formed a JV with Japan-based Topy Industries to set up a plant in Gujarat.
WIL's net profit for the first half year ended September 2017 went up to Rs 38.48 crore from Rs 27.05 crore in the corresponding period last year.
The profits were bolstered by a slump sale of its passenger car steel wheel business to its subsidiary WIL Car Wheels Ltd (WCWL).
Topy Industries, a leading Japanese car wheel manufacturer, has acquired a 26 per cent stake in WCWL, with WIL holding the balance 74% share.
The joint venture has just completed a ceremony with a new plant at Vanod, Gujarat. The plant will manufacture 1.5 million passenger car steel wheels and the company plans to invest Rs 42 crore to service customers in the state.