Shares of a leader in designing & manufacturing automotive wheels under both steel & alloy category surged 5.3 percent on BSE to Rs. 215.35 on Tuesday, after announcing a new product launch in the Automotive Component category and the commencement of commercial production at its existing facility.
With a market cap of Rs. 3,379.5 crores, the shares of Steel Strips Wheels Limited closed in the green at Rs. 215.35, up by nearly 5.3 percent, compared to its previous closing price of Rs. 204.5.
What’s the news:
According to the latest regulatory filings with the stock exchanges, Steel Strips Wheels Limited (SSWL) announced the launch of a new product and the commencement of its commercial production at its existing manufacturing facility.
The company launched Aluminium Steering Knuckle, under the category of Automotive Component, and also announced the commencement of commercial production at its existing manufacturing facility located at Mehsana, Gujarat, starting from 5th November.
Financials:
The company reported a marginal growth in revenue from operations, experiencing a quarter-on-quarter increase of nearly 6.8 percent, rising from Rs. 1,025 crores in Q2 FY24 to Rs. 1,095 crores in Q2 FY25.
Likewise, during the same period, the company’s net profit increased from Rs. 41 crores to Rs. 46 crores, representing a significant growth of around 12.2 percent YoY.
In October 2024, SSWL reported a monthly net turnover of Rs. 370.05 crores, compared to Rs. 395.67 crores in October 2023, reflecting a year-on-year decline of 6.48 percent.
The company also posted a gross turnover of Rs. 455.24 crores for October 2024, down from Rs. 481.41 crores in the same month last year, marking a year-on-year decrease of 5.44 percent.
SSWL achieved its highest-ever turnover of Rs. 4,357 crores in FY24, driven by the acquisition of AMW Auto Components Limited in October 2024. The company also recorded the sale of ~190 lakh units, with 7 million Steel Wheel Capacity.
Stock Performance:
The stock has delivered negative returns of nearly 23.6 percent in one year, as well as around 3.3 percent returns in the last six months. So far in 2024, the shares of Steel Strips Wheels have given negative returns of about 18.6 percent.
About the company:
Incorporated in 1985, Steel Strips Wheels Limited is engaged in the business of designing, manufacturing and supplying Steel Wheel Rims and Alloy Wheel Rims catering to different segments of the automobile industry.
Headquartered in Chandigarh, SSWL has a domestic market share of 37 percent in Passenger Vehicle, 61 percent in Medium & Heavy Duty Trucks, 42 percent in tractors, 70 percent in over-the-road vehicles, and 30 percent in 2-3 wheelers.
Written by Shivani Singh
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