Wheels India

Steel Strips Wheels was up in the green after it reported a major jump in its August sales. In a Press Release issued by the company yesterday morning, the stock has reacted today. It reported the highest ever monthly sales for August as its wheel sales rose 16% (YoY) to 9.71 lakh units in August. Exports spurted 140% to 179,940 units. Its tractor segment sales rose 49% on the back of very good demand from all across the customers. The company hopes that good monsoon will keep the demand high in coming months. In the 2-3 wheeler segment, sales rose 41% while demand from commercial vehicles remained soft. The growth in July numbers had also been good, with sales up 15%, with a 36% rise in exports.

These are encouraging sales numbers for August and the optimism is encouraging but it had not ended Q1Fy14 on such positive notes. The company posted a 8% (YoY) decline in net profit at Rs.6.20 crore and this was on a 5% drop in net sales at Rs.245 crore. But going by the encouraging sales numbers for July and August and expecting September also to be equally robust, looks like the company might have a much better Q2. Concentrating on improving market share and product mix, the company expects to achieve 10 lakh wheel sale mark in October 2013 which again would be a record monthly sale number. Also given the export content, the falling rupee factor is also expected to go in favor of the company.