SSWL: June sales down by 10 per cent, but exports rise

Chandigarh-headquartered company Steel Strips Wheels Limited (SSWL) reported total sales decline of 10 per cent for the month of June on a year-over-year (YoY) basis.

Steel Strips Wheels achieved total wheel rim sales of 11.28 lakh in June 2019 as against 12.66 lakh in June 2018, representing a de-growth of 10 per cent YoY, said the company in a filing for June sales highlight on Wednesday. The slowdown in sales was mostly due to shutdown coupled with major inventory reduction exercise going on at all car manufacturers' end. The company expects the inventory reduction in auto industry to continue in July and come to normal levels of by July to normalise production.

The company’s gross turnover came in at Rs. 168.34 crore in June 2019 vs. Rs. 197.60 crore last year. The management expects Q2FY20 to be the record quarter with the highest ever volume with high exports volumes. The export segment is all set to offset the entire loss of production due to a decline in domestic vehicle segment and will ensure 100 per cent utilisation of its production facilities.

Steel Strips Wheels is engaged in the business of manufacturing single piece steel wheel rims in the range of 10 to 30 inches mostly used in scooters, passenger cars, utility vehicles and tractors which is covering almost all the vehicle segment. Its supply of rims goes to almost all key manufacturers in auto sector.

At 2.20 pm, the stock traded in green with marginal gains of 0.14 per cent at Rs. 787.90 per share on BSE.