Last Updated : Thursday, January 2, 2020 20:04:15

MEHSANA Unit and EXPORTS will be key growth drivers, for STEEL STRIP WHEELS

SOMALHERI/LEHI (PUNJAB) | MUMBAI | AHMEDABAD-GANDHINAGAR | RAJKOT – In a regulatory monthly business update as submitted by the Punjab headquartered auto parts manufacturing company Steel Strip Wheels Ltd said of having witnessed 6% year-on-year growth at 1.2 million units sold in the month of December against 1.13 million units sold in December 2018.

Despite the sales of the company zoomed up in December 2019, the revenues of the company shrunk 14% year-on-year at 1.54 billion rupees versus 1.78 billion rupees in December 2018.

The filing further read and emphasized of the growth trajectories to continue based on good exports and contribution from Mehsana facility, for alloy wheel segment.

The company statement further read that, SSWL achieved December 2019 total wheel rim sales of 11.94 Lacs Vs 11,30 Lacs in December 2018 representing a growth of 6% YoY.

The company expects the momentum will continue based on Good exports and Mehsana alloy wheel segment contribution.

SSWL has achieved gross turnover of Rs 153.71 Crs in December 2019 Vs 178.39 Crs in December 2018, there by recording a de-growth of 14% and achieved Net turnover of Rs,127.03 Crs in December 2019 Vs Rs.148.46 Crs in December 2018, recording a de-growth of 14%.

The MoM (month-on-month) revenue also saw an improvement of 2% and the company saw the revenue number further catching up pace with more contribution coming from Mehsana Plant going ahead, into balance period of the Financial year.

Passenger car segment volumes rose 1oolo in December 2019 YoY.

The PV volumes saw a sustained rebound with yearend sales push from all car makers to clear all old stocks.

As inventory is not heavy at dealership so good production improvement Mol4 and we expect this trend to sustain going into Q4.

The Mehsana Plant will contribute heavily going into Q4 with good throughput for customers.

2 & 3 Wheelers segment rose 2o%.

The segment saw growth with good inventory clearance pushing production picking up.

The 85-6 changeover has already started and we expect this factor helping clear all of BS-4 stocks to be cleared by dealership going into new
financial year.

So we expect good sales figure for this segment to maintain good sales growth in Q4.

Exports Segment rose by 12%.

The export segment moved with all export location coming off their festive holidays and US sales have started on new production implementation.

We expect the Q4 to be record levels for export segment and will reach highest ever for the company.

Tractor volumes fell by 5% in December 2019 YoY.

The tractor segment saw a drop in volumes YoY with seasonality playing the trend.

The trend reversal may start again from January Mid till June end.

The tractor sale pick should start in Q4 and we expect the trend to resume and normalize with near trend growth.

Commercial Vehicles segment volumes fell by 52o/o YoY in December 2019.

The CV makers continue to manage production in line with 85-6 changeover and the inventory management in last quarter will be cruclal to manage production going ahead.

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