Steel Strips Wheels run up north on strong sales data

Last Updated: Thu, Dec 01, 2016 15:21 hrs
File photo of smoke rising from chimneys of JFE's steel factory at Keihin industrial zone in Kawasaki

Steel Strips Wheels Limited shares are up sharply after the company said that total wheel rim sals rose 14% in November 2016.

The company, which is engaged in designing and manufacturing automotive steel wheels and has leading Indian and international automobile manufacturers as its customers, reported sales of 11.99 lakh units in the month of November 2016, up 14% compared to its sales in November 2015.

Sales of heavier wheels contributed to the sharp surge. Exports declined 24% in November 2016, compared to the same month last year. The company expects to improve on this going ahead with many new exports orders starting from the month of December 2016.

The 2&3 wheelers segment de-grew by 11% in November 2016 (YoY). LCV & MHCV segment volumes grew by 24% (Y0Y) in November 2016. Domestic tractor segment saw a volume growth of 171% last month, thanks to good overall sales all across the customers in the segment.

Gross turnover was up 22% to Rs 128.62 crore in November 2016, as compared to November 2015. Net turnover growth in gross turnover to Rs 128.62 crore in November 2016 over November 2015. Net turnover rose 22% to Rs 115.25 crore in November 2016 over November 2015.

Net profit of SSWL rose 19.9% to Rs 18.02 crore on 2.8% decline in net sales to Rs 290.95 crore in Q2 September 2016 over Q2 September 2015.

The stock has spurted to Rs 645 now, gaining more than 18%. It had hit a 52-week high of Rs 775 in mid-October, rallying quite consistently from a low of Rs 284 it touched in the last week of February 2016.

More from Sify: