Steel Strips Wheels expects 14 per cent YoY growth in next 3 months

Steel Strips Wheels Limited (SSWL) has informed the bourses about its estimation in terms of sales under various segments for the next three months.

The company’s management has stated that the momentum for all segment sales is continuing and the business is getting upwardly revised with contribution now coming from PV, tractors, and two and three-wheeler segments. Very strong momentum from the export is expected to continue going forward.

The management has revised its estimation for the months of August and September expecting 75 per cent YoY growth in exports, 500 per cent YoY growth in PV alloy, and 20 per cent YoY growth in tractors. It expects to reach an average gross revenue rate of Rs 150-Rs 155 crore per month in the next 3 months. This is a 14 per cent increase in the average volume and revenue on a YoY basis.

Also, the company’s order book has been getting stronger over the last few months. Today also, it has bagged new export orders from Europe worth EUR 2,53,000 approximately.

The order, which involves the supply of nearly 37,000 wheels for EU caravan trailer markets, is planned to be executed in the months of November and December from its Chennai plant. The said order is likely to generate revenue of around EUR 2,53,000.

SSWL 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.

On Friday, the stock of SSWL surged 4.1 per cent making an intraday high of Rs 495 from its previous close of Rs 475.35 on BSE.