Shares of Steel Strips decline post reporting June monthly sales

The shares of Steel Strips Wheels Limited (SSWL) slipped by 1.21 per cent on Thursday after the company reported its monthly sales numbers for the month of June.

The monthly performance of the company was expectedly disappointing on a year-on-year (YoY) basis, owing to the COVID-19 pandemic and ensuing lockdown.

For June 2020, the company reported that its total wheel rim sales fell by 43 per cent on a YoY basis to Rs 6.46 lakh from Rs 11.28 lakh in June 2019. It achieved a gross turnover of Rs 97.59 crore in June 2020 as compared to Rs 168.34 crore in June 2019, a decline of 42 per cent. The net turnover of the company was reported at Rs 9,276 crore in June 2020 and Rs 13,954 crore in June 2019, recording a decline of 41 per cent.

The company has shown improvement in terms of growth in performance since the previous month with total wheel rim sales growing by 125 per cent and turnover growing by 15 per cent since May 2020.

The export segment maintained a good pull back from COVID-19 levels and has reached close to pre-COVID levels. In the month of June 2020, the company has received multiple orders from US and European markets, where the company has been able to expand its product reach. The company expects this to trend up and maintain 10-15 per cent growth in its export segment going ahead.

The tractor segment was another segment, which saw a growth momentum and went close to all-time highs in terms of sales. The management expects to hit an all-time high for tractor sales in the next three months.

On Thursday, the stock of SSWL closed Rs 433.30, down by 1.21 per cent or Rs 5.30 per share. The 52-week high is recorded at Rs 821.80 and the 52-week low is Rs 317.35 on BSE.