Steel Strips Wheels July sales decline 27% YoY

Steel Strips Wheels (SSWL) said its total wheel rim sales fell 27% to 9.25 lakh units in July 2020 as against 12.59 lakh units in the same month last year.

SSWL said it expects to maintain a good M-o-M (month-on-month) uptrend to come to pre COVID-19 levels by September 2020.

The company has achieved gross turnover of Rs 132.75 crore in July 2020 from Rs 182.52 crore in July 2019, thereby registering a decline of 27%. It achieved a net turnover of Rs 110.35 crore in July 2020 from Rs 154.50 crore in July 2019, recording a de-growth of 29%.

Alloy wheel segment reported its highest volume sale every for July 2020. Mehsana plant is expected to run at 90% utilization in August 2020 onwards. Tractor segment remained at almost 100% utilization pace and near all-time high historic trends.

On a year on year basis, exports segment volume fell by 3% last month. Tractor volumes rose by 15% in July 2020 YoY. Passenger car segment volumes fell 13% in July 2020 YoY. Two & three wheelers segment fell 68%. Truck segment volumes fell by 53% YoY in July 2020. The announcement was made during trading hours today, 3 August 2020.

On a standalone basis, Steel Strips Wheels reported a net loss of Rs 5.25 crore in Q4 March 2020 as against a net profit of Rs 19.92 crore posted in Q4 March 2019. Net sales declined 26.5% to Rs 387.07 crore in Q4 March 2020 over Q4 March 2019.

Shares of Steel Strips Wheels declined 3.82% to Rs 398 on BSE. SSWL is engaged in the manufacturing of steel wheel rims catering to different segments of automobile industry. The firm operates in automotive wheels segment. Its geographical segments include India and overseas.

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