Steel Strips Wheels reports muted numbers for March

Steel Strips Wheels (SSWL) reported its performance for the month of March. The company managed to clock net turnover of Rs. 151.60 crore in March 2019, which represents nearly 10 per cent fall from March 2018.

The company achieved total wheel rim sales of 10.80 lakh in March 2019 as against 13.23 lakh in the same month of the previous year. To streamline the higher inventory at dealer end there was a production cut. The company said that major part of the cutback in inventory was completed in the last two months and it expects normalcy to resume from April 2019 onwards. The company further added that automakers sales for March 2019 was better than previous month and more inventory clearance has happened in the last two months.

In terms of segment-wise performance, the PV segment recorded marginal decline of around 4 per cent. The company believes that this segment would witness improvement from Q2FY20E. Tractor and truck division witnessed 24 per cent and 23 per cent decline, respectively, while two-wheeler & three-wheeler segment witnessed de-growth of nearly 49 per cent.

In terms of export, SSWL recorded marginal 2 cent growth. It is chasing large export orders worth up to 2 million wheels annually which the company expects to win in the next one month. Further, it expects that large inflows of export orders will expand its global footprints, in the next two months.