SSWL bags mega truck wheels order from US

Steel Strips Wheels Limited (SSWL) informed the bourses that it has bagged a large export order for supply of 1,10,000 truck steel wheels for the US-Truck & Trailer aftermarket.

This order is for the supply of 1,10,000 truck steel wheels in five months from its Chennai plant from next month onwards. The company expects to generate additional revenue of around US$5 million in five months on a repetitive basis.

The order book for both the truck plants is fully sold out for FY19 and the company plans to carry out de-bottlenecking exercises to increase the capacity at both the CV plants. The combined capacity utilization of three plants (Dappar, Jamshedpur, Chennai) stood at 88.4 per cent in FY18 as against 85.51 per cent in FY17.

SSWL is involved in the design and manufacture of automotive wheels. The company is a leading supplier to the domestic and international automobile manufacturer. The company enjoys the position of market leader in steel wheel segment. It enjoys a healthy market share in the various segment such as OTR (Back Hoe Loader) 70 per cent, Commercial Vehicle (MHCV) 52 per cent, Passenger Car 50 per cent and Tractor 44 per cent.

On Tuesday, the stock opened at Rs. 1,283 per share and jumped nearly 4 per cent cheering the news and made an intraday high of Rs. 1,310 per share at 10:46. At 10:54, the was trading at nearly Rs. 1,300 on the BSE.