Steel Strips Wheels gains after upbeat Q4 volume guidance

The stock was up 5% to Rs 692 on intra-day trade, extending its Tuesday's 5% gain on the BSE

Steel Strips Wheels Limited (SSWL) gained 5% to Rs 692 on intra-day trade, extending its Tuesday’s 5% gain on the BSE, after the company upgrades Q4 (January-March) volume guidance buoyed by truck and tractor.

“For Q4 FY16-17 we will target to achieve a volume sale of 3.56 million against 3.32 million achieved in Q3 of FY16-17 representing a growth of 7% quarter-on-quarter (QoQ),” SSWL said in a BSE filing.

The volume growth is primarily driven by passenger cars and very good growth in tractors and truck segment. The commercial vehicle (CV) segment is witnessing very good demand for Q4 and will surely negate demonetization impact, it added.

SSWL said the portfolio growth of heavier wheels is getting into high double digit and will surely give its impact on the financial performance in Q4.

The company expects the 4th quarter to be better as the knee jerk reaction passes away and normalcy will return for the segments with easing cash crunch.

At 01:02 pm; the stock was up 2% at Rs 671 as compared to a marginal 0.03% rise in the S&P BSE Sensex. A combined 61,555 shares changed hands on the counter on the BSE and NSE.