Steel Strips Wheels Ltd Share Price – NSE /  BSE

Auto Ancillaries, Small Cap

Steel Strips Wheels will hold a meeting of the Board of Directors of the Company on 17 January 2025.

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The agency has also affirmed the company’s short-term rating at 'IND A1+’.

India Ratings and Research stated that the affirmation reflects a sustained improvement in SSWL’s revenue and credit metrics over FY20-FY24, a resilient operating profitability, range-bound EBITDA margins, a reduction in promoter’s shares pledge to ‘nil’ as of September 2024 from 4.92% in September 2023 and an increased share of higher-margin business (alloy wheels) in the revenue, leading to a significant improvement in its business profile.

The agency further said that a significant and sustained improvement in the revenue and profitability, maintaining increased proportion of higher margin businesses along with a reduction in the working capital cycle, maintaining a positive free cash flow while reducing the adjusted net leverage below 1.5x, all on a sustained basis, could lead to a positive rating action.

However, a decline in the revenue or profitability, a stretch in the working capital cycle, or a decline in the liquidity cushion, or any large debt-funded organic or inorganic capex, leading to the adjusted net leverage remaining above 2.5x, all on a sustained basis, could lead to a negative rating action.

Steel Strips Wheels manufactures steel wheel rims in the range of 10-to-30-inch diameter for PVs, utility vehicles, tractors, trucks, two wheelers, among others.

The scrip shed 0.52% to currently trade at Rs 209.50 on the BSE.

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Steel Strips Wheels has received net turnover of Rs 364.74 crore in December 2024 compared to 332.15 crore in December 2023, recording a growth of 9.81%. Gross turnover rose 10.19% to Rs 444.81 crore in December 2024.

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The company's gross turnover jumped 10.19% to Rs 444.81 crore in December 2024 from Rs 403.69 crore recorded in December 2023.

In value terms, Tractor segment surged by 61% YoY, Passenger Car –Alloy segment gained 29% YoY and Passenger Car–Steel segment increased 2% YoY. However, Truck segment declined 3% YoY, 2&3 Wheeler segment was flat and Exports segment grew 3% YoY in December 2024.

In volume terms, Tractor segment soared by 57% YoY, Passenger Car –Alloy surged 17% YoY and Passenger Car–steel segment rose 7% YoY. On the other hand, Truck segment declined 3% YoY, 2&3 Wheeler segment dropped 17% YoY and Exports segment slipped 1% YoY in during the review period.

Steel Strips Wheels (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.

The company’s consolidated net profit fell 11.8% to Rs 46.11 crore in Q2 FY25 as against Rs 52.30 crore posted in Q2 FY24. Revenue from operations decreased 3.4% YoY to Rs 1,095.10 in Q2 FY25.

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