SSWL jumps 9 per cent on order win from US
Automotive steel wheels designer and manufacturer, Steel Strips Wheels Limited (SSWL) has secured a fresh export order from USA worth US$ 3,15,000 approximately.
The order, which involves the supply of nearly 14,000 truck wheels for USA truck and caravan trailer markets, is planned to be executed between July and August from its Chennai plant. The said order is likely to generate a revenue of around US$ 3,15,000.
Meanwhile, this order reflects a slow but steady restart of operations in US markets after COVID-19 lockdown situation. The company is now anticipating orders from several other regular customers in the coming weeks as the market has started showing signs of revival.
The company holds 50 per cent of the market share in the passenger vehicle segment, 42 per cent in the tractor segment and 52 per cent in the medium and heavy commercial vehicle (M&HCV) segment.
Recently, the company has stated that it will register the highest-ever tractor sales in Q2FY21 (July to September), supported by a very strong farm segment activity. With its sales growth, the company’s operating profit would also see a boost that would eventually, lead to healthy profitability.
Steel Strips Wheels Ltd is engaged in the business of manufacturing single piece steel wheel rims in the range of 10 to 30 inches mostly used in scooters, passenger cars, utility vehicles and tractors, which is covering almost all the vehicle segment. Its supply of rims goes to almost all key manufacturers in the auto sector.
With this order win, the stock of SSWL spiked nearly nine per cent and made an intraday high of Rs 457 on BSE.