Steel Strips Wheels gains after good November sales

Steel Strips Wheels rose 1.1% to Rs 147.40 at 11:52 IST on BSE after the company said its total wheel rim sales rose 12% to 8.69 lakh units in November 2013 over November 2012.

The sales numbers were announced at the fag end of market hours on Monday, 2 December 2013. The stock had fallen 0.78% to settle at Rs 145.80 on that day.

Meanwhile, the S&P BSE Sensex was down 19.10 points or 0.09% at 20,878.91.

On BSE, 2,003 shares were traded in the counter as against average daily volume of 4,725 shares in the past two weeks.

The stock hit a high of Rs 149.70 and a low of Rs 145 so far during the day.

Steel Strips Wheels (SSWL)'s exports rose 5% to 1.04 lakh units in November 2013 over November 2012. The export segment is growing steadily and is expected to move up going into fourth quarter with ramp up in new businesses will come into effect, the company said in a statement.

Two & three wheeler segment sales grew 72% on the back of good volume growth across the customers and is poised to move with brisk pace over the coming months supporting overall volumes, the company said in a statement.

Tractor segment volumes rose 12% and are expected to again pick good momentum from fourth quarter onwards on the back of new developments and good monsoons yielding record harvest, SSWL said. This segment is expected to grow at 15% going forward in balance four months of this financial year, the company said.

Domestic Passenger vehicle segment sales shrank by 7% on lower number of working days in November and some post slowdown post festive season, the company said. This is expected to improve going into fourth quarter, SSWL said in a statement.

LCV & MHCV segment volumes grew by 22% on few developments coming in place and helping volumes in otherwise very tough CV segment cycle, the company said. The segment will continue to face headwinds and the company will try to face them by broadening its product portfolio and exploring new markets for the segment, SSWL said.

Steel Strips Wheels' net profit jumped 31.58% to Rs 7.29 crore on 2.95% growth in net sales to Rs 264.82 crore in Q2 September 2013 over Q2 September 2012.

Steel Strips Wheels manufactures automotive steel wheels since 1991. Its product range comprises wheels for passenger cars, multi utility vehicles, tractors, trucks, as well as two and three wheelers. It currently has three production facilities. It mainly produces passenger car wheels in Dappar (Chandigarh) and Oragadam (Chennai) and truck wheels in Jamshedpur.

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