Steel Strips soars 10 per cent upon order win from Europe and US

Automotive steel wheels designer and manufacturer, Steel Strips Wheels Limited (SSWL) secured export orders worth about 335K euros from Europe and US. The order which involves supplies of nearly 8,000 truck wheels for EU and US truck trailer markets is planned to be executed in June and July.

This order reflects the slow but steady restart of operations in EU & US markets after the COVID-19 lockdown situation. The company is now anticipating orders from several other regular customers in the coming weeks as the market shows signs of revival. In terms of the export figures based from its Chennai plant, the company is anticipating a 5 per cent YoY growth in June 2020.

The company is currently enjoying 52 per cent in the M&HCV segment, 50 per cent of the market share in the passenger vehicle segment and 42 per cent in the tractor segment.

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

In response to the news of the order win, SSWL's stock spiked almost about 10 per cent and made an intraday high of Rs 390.85 on the BSE.