Steel Strips Wheels jumped 12.55% to Rs 130.45 at 11:41 IST on BSE after the company said its wheel sales rose 16% to 9.71 lakh units in August 2013 over August 2012.
The company announced August sales during trading hours today, 3 September 2013.
Meanwhile, the S&P BSE Sensex was down 126.79 points or 0.67% at 18,759.34.
On BSE, 3,704 shares were traded in the counter as against average daily volume of 4,539 shares in the past one quarter.
The stock hit a high of Rs 130.45 and a low of Rs 120 so far during the day. The stock had hit a 52-week low of Rs 111.50 on 20 August 2013. The stock had hit a 52-week high of Rs 240.90 on 17 September 2012.
The stock had underperformed the market over the past one month till 2 September 2013, sliding 2.28% compared with the Sensex's 1.45% fall. The scrip had also underperformed the market in past one quarter, declining 20.37% as against Sensex's 4.42% fall.
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The small-cap company has equity capital of Rs 15.21 crore. Face value per share is Rs 10.
Steel Strips Wheels (SSWL) said that the sales in August 2013 were its highest ever monthly sales.
Exports spurted 140% to 179,940 units in August 2013 over August 2012. Strong performance is expected to continue with more new export business coming on-stream and ramping up of existing businesses will result in higher volumes going forward in FY 2014. These will hence improving profitability going forward, SSWL said in a statement.
Tractor segment sales grew 49% on the back of very good demand from all across the customers and various new developments coming on-stream for supply, SSWL said. Good monsoon will keep the demand high and the company expects to reach greater benchmarks with every passing month, SSWL said in a statement.
Two & three wheeler segment sales rose 41% and is expected to show similar momentum going forward, the company said. SSWL said it expects these numbers will see upward momentum going forward as few more new businesses will add volumes. Commercial vehicle segment is still soft and is recovering slowly and the company said it is very hopeful that all the new developed wheels will push volume higher along with improvement in the industry.
SSWL said that the company's focus will remain on improving market share and product mix portfolio to maximize profitability.
SSWL said it expects to achieve 10 lakh wheel sale mark in October 2013 which again would be a record monthly sale number. The performance is very satisfactory given the conditions prevailing in the Automotive Industry and the company said it expects to maintain the growth momentum on the back of good overall growth and new business starts.
SSWL's net profit fell 7.7% to Rs 6.20 crore on 5.3% decline in net sales to Rs 244.83 crore in Q1 June 2013 over Q1 June 2012.
Steel Strips Wheels manufactures automotive steel wheels since 1991. Its product range comprises wheels for passenger cars, multi utility vehicles, tractors, trucks, otr vehicles as well as two and three wheelers. It currently has three production facilities. It mainly produces passenger car wheels in Dappar (Chandigarh) and Oragadam (Chennai) and truck wheels in Jamshedpur.
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