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Steel Strips Wheels jumps after winning order

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Capital Market
Last Updated : Jul 10 2018 | 11:04 AM IST

Steel Strips Wheels rose 4.04% to Rs 1,308 at 10:52 IST on BSE after the company said it bagged largest exports order for truck and trailer aftermarket from USA.

The announcement was made during trading hours today, 10 July 2018.

Meanwhile, the S&P BSE Sensex was up 216.09 points, or 0.60% to 36,150.81.

On the BSE, 466 shares were traded in the counter so far compared with average daily volumes of 2,811 shares in the past two weeks. The stock had hit a high of Rs 1310 and a low of Rs 1271.70 so far during the day. The stock hit a record high of Rs 1,473.70 on 24 April 2018. The stock hit a 52-week low of Rs 769.95 on 23 November 2017.

Steel Strips Wheels (SSWL) said the order comprises supplies of 110,000 truck steel wheels in 5 months from its Chennai plant from next month onwards. Total revenue generated by this additional order would be close to $5 million in 5 months, which is also expected to be repeated.

This big order will mark SSWL's arrival in the high potential NA truck steel wheels market. SSWL is in discussions with other large truck & trailer makers in USA and expects to close similar big contracts in this segment in near future. SSWL expects to significantly increase its presence in high potential truck and trailer wheels market in US and EU in the coming months and it's capacity enhancement at Chennai plant, which is in progress, will support this strategy, the company said.

Net profit of Steel Strips Wheels rose 126.26% to Rs 22.40 crore on 13.53% rise in net sales to Rs 431.08 crore in Q4 March 2018 over Q4 March 2017.

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Steel Strips Wheels designs & manufactures automotive steel wheels since 1991 and is among the leading suppliers to Indian & global automobile manufacturers.

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First Published: Jul 10 2018 | 10:55 AM IST

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