Steel Strips Wheels Limited (SSWL), one of the leading manufacturers of automotive wheels in India, reported modest growth for June 2024, despite mixed performance across different segments of the automotive market.
SSWL’s net turnover for June 2024 was Rs. 358.11 crores, up 0.64% from Rs. 355.83 crores in June 2023. The gross turnover increased by 1.15% to Rs. 434.21 crores from Rs. 429.26 crores last year.
Segment Performance:
In the two and three-wheeler sector, there was strong growth with an 87% increase in sales volume and a 99% rise in sales value. This was driven by urban mobility improvements and the recovery of last-mile delivery services. The tractor segment showed a 20% growth in both sales volume and value, supported by promising monsoon forecasts and government initiatives for farm mechanization.
In the truck segment, there was a slight decrease with a 1% drop in sales volume, although the sales value remained stable. This could be due to pressure on freight rates or a temporary slowdown in infrastructure projects. Alloy wheels saw a 4% decrease in sales volume but a 5% increase in sales value, indicating a shift towards premium products. Steel wheels experienced a 12% decline in sales volume and a 5% decrease in sales value, reflecting changing consumer preferences or production limitations.
Exports showed a 25% increase in sales volume, but the sales value declined by 16%. This decline is likely due to pricing pressures in international markets or unfavorable currency exchange rates.
Overall, SSWL achieved a 2% growth in volume and a 1% increase in value across all segments combined. The company’s ability to maintain growth amid global economic challenges, such as inflation, supply chain disruptions, and geopolitical tensions, showcases its resilience and adaptability.
SSWL’s future performance will depend on its ability to innovate and align with industry trends like electrification and lightweighting. The varied performance across segments highlights the need for strategic focus on high-growth areas while addressing challenges in underperforming sectors.