SSWL secures 10,700 wheels export order for US caravan trailers

Steel Strips Wheels Limited (SSWL) secured firm export orders for over 10,700 wheels for US caravan trailer market. This order is worth USD 1,70,000 and will be executed from its Chennai plant in the month of July and August.

Post the recent nationwide lockdowns, US and UK markets have begun resuming operations and the company is expecting to receive similar types of orders from its other regular customers. These orders will help the company in ramping up its Chennai plant production.

On Tuesday, the company had bagged a fresh export order for US$ 3,15,000 for supply of nearly 14,000 truck wheels for the same market. Similarly, the company had won exports orders for over 13,000 wheels and 20,000 wheels last week for EU caravan trailer & US mobile home markets to be executed in July and from July to November, respectively.

Regarding the COVID-19 impact, the company had announced that its profitability in the March quarter would be impacted and thereby in FY20 as a whole. It is reducing the inventory levels and working at liquidating the non-core assets in the company to have a comfortable liquidity position. Nonetheless, no significant impact is foreseen by the company on its existing contracts and agreements.

The company accounts for 50 per cent of the market share in the passenger vehicle segment, 42 per cent in the tractor segment and 52 per cent in the medium and heavy commercial vehicle (M&HCV) segment.

The promoters hold 62.85 per cent stake in the company. Recently, they released some portion of its pledged shares. Of the total promoters’ shareholding, 48.63 per cent was pledged which got reduced to 46.59 per cent.

In the early morning session of Wednesday, the stock of SSWL jumped 4.8 per cent to Rs 455 from its previous close of Rs 434.05 on BSE.