This Auto Component Market Leader stock deals in the business of manufacture, designs, and supply of Steel Wheel Rims and Alloy Wheels. The company has provided an update on revenue guidance and the order book for FY25. In this article, we will look at Steel Strips Wheels businesses, Business segments, financials, and outlook.
Price Movement
Steel Strips Wheels Limited‘s stock in Friday’s session closed at Rs. 183.30 per share down by 3.78 percent from the previous closing price of Rs. 190.50. The stock has delivered a negative return of around 33 percent in the past year and has underperformed the Nifty Index in the same period.
Market Share & its Key Customers
The company has a domestic market share of 37 percent in Passenger Vehicles (Maruti Suzuki, Hyundai, Mahindra, Honda, MG Motor, Kia), 1 percent in MHCV (Ashok Leyland and Tata Motors), 42 percent in Tractor or 70 percent in Off the Road Tyres (Mahindra, Escorts, JCB, Sonalika), 30 percent from 2 or 3 Wheeler (Honda Motorcycle and Scooter, Suzuki Scooters, Mahindra 3W).
Capacity Utilization
The company has a capacity utilization of 205 lakh units for 9MFY25 and for FY25 they expect it to increase to 270 lakh units. The Alloy Wheel Segment is expected to increase from 36 lakh units for 9MFY24 to 42 lakh units by FY25.
Export Revenue & Order Book Guidance
The company projects its export revenue to reach approximately Rs. 550 crores to Rs. 600 crores for FY25. The company expects Q4 to be the strongest for exports due to geopolitical conditions changes in the U.S. and expects an export order of Rs. 150 crore to Rs. 160 crore in the next three months. The order book is expected to close with Rs. 175 crores to Rs.180 crore. The company has provided a revenue guidance of around Rs.4,400 crores for FY25.
Financial Performance
Their Q3FY25 results show revenue from operations of Rs. 1,074.67 crores which declined by 3.2 percent year on year, from Rs. 1,100.30 crores in Q3FY24. Their net profit declined by 19.69 percent year on year, from Rs. 59.41 crores in Q3FY24 to Rs. 47.71 crores in Q3FY25.
About the Company & Capacity Expansion
Steel Strips Wheels Limited was incorporated in 1985. They specialize in manufacturing steel and alloy wheel rims for automotive applications while serving both domestic and international markets with four steel wheel plants, and one alloy wheel and backward integrated plant across India. The company plans to increase its Aluminium Knuckles capacity from 5 lakh units FY25E to 10 lakh units by FY26E.
Written by Santhosh S
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