Wheels India

Steel Strips Wheels Ltd (SSWL) is a part of the Steel Strips Group. Based in Chandigarh, it makes single piece steel wheel rims in the range of 10 to 30 inches for scooters, passenger cars, utility vehicles and tractors. It supplies rims to almost all major manufacturers of two wheelers, three wheelers, four wheelers, tractors and heavy commercial vehicle.

The stock hit a new 52-week high yesterday at Rs.395.95, enthused by its ‘good’ performance for Q3FY15. The company posted a 7% (YoY) rise in net sales at Rs.267 crore and operating costs rose 5%. Consequently EBITDA fell from Rs.25 crore to Rs.24 crore. A 20% rise in other income, 6% drop in interest outgo and MAT credit of Rs.1 crore helped the company end the quarter with a net profit of Rs.9 crore, up 50% (YoY) but sequentially, it was down 25%.

The good news in the company is that its 9MFY15 net profit of Rs.27 crore has already surpassed Rs.24 crore it posted for FY14. Thus the fact that it will end current fiscal on a much higher note is a given. The company has guided that it hopes to end FY15 with a 16-18% growth in volumes and 15.16% rise in turnover.