Steel Strips Wheels lost 1.45% to Rs 139.80 at 11:16 IST on BSE, with the stock sliding on profit booking after Thursday's 11.42% rally triggered by the company reporting record wheel sales in September 2013.
Meanwhile, the S&P BSE Sensex was down 42.11 points or 0.21% at 19,859.96.
On BSE, 1,723 shares were traded in the counter as against average daily volume of 5,765 shares in the past one quarter.
The stock hit a high of Rs 143.05 and a low of Rs 137.90 so far during the day. The stock hit a 52-week high of Rs 235 on 3 October 2012. The stock hit a 52-week low of Rs 111.50 on 20 August 2013.
The stock had outperformed the market over the past one month till 3 October 2013, surging 16.18% compared with the Sensex's 9.14% rise. The scrip had also outperformed the market in past one quarter, advancing 4.61% as against Sensex's 3.78% rise.
The small-cap company has equity capital of Rs 15.21 crore. Face value per share is Rs 10.
Shares of Steel Strips Wheels (SSWL) had rallied 11.42% to settle at Rs 141.85 on Thursday, 3 October 2013, after the company during trading hours on Thursday said its total wheel sales rose 9% to 10.05 lakh units in September 2013 over September 2012. SSWL said that the September 2013 sales are its highest ever monthly sale so far.
Passenger Car/MUV wheels sales rose 8% to 4.18 lakh units in September 2013 over August 2013. Sales declined 14% to 4.18 lakh units in September 2013 over September 2012 due to base effect of car segment sale which will improve going forward with new business starts and ramp of existing businesses, the company said. The car segment growth is also expected to improve further with the company's portfolio doing exceedingly good and getting very high customer acceptance, it added. SSWL said it enjoys 100% supply to Honda amaze, Hyundai i10 Grande, Renault Duster. Few new passenger car businesses will start by December 2013 where SSWL enjoys 100% supply which will further boost volumes, the company said in a statement.
The tractor segment sales grew strong with a growth of 43% and the trend is expected to continue and improve the profitability going ahead, SSWL said. On the back of a very good monsoon this segment will continue to drive numbers in second half of FY 2014, it added.
Two and three wheeler segment sales grew 58% in line with the company's guidance and the robust pace will continue with few more new business starts and ramp up of existing models, SSWL said in a statement.
Exports surged 107% to 1.49 lakh units in September 2013 over September 2012. Going forward the company looks to further add volumes in this segment based on start of new businesses that the company had bagged in the past, it said.
With the September sale, the second quarter (July-September 2013) sale stood at 28.54 lakh units as against 25.27 lakh units for the same period last year, SSWL said. The second quarter numbers beat the company's guidance of 27.50 lakh provided in the month of July by a healthy margin, SSWL said.
Commercial vehicle (CV) segment is limping in slow lane and the company's new developments in this segment will start delivering in the third quarter, SSWL said. This along with expected pick up in CV segment in balance months of this fiscal will prove to be a very valuable kicker in terms of sales and also EBITA accretion, the company said in a statement.
The capacity utilization has improved considerably over last 6 months and currently the company's Dappar plant is at 90% utilization and Chennai is operating at 60% utilization, SSWL said. Chennai plant is expected to move further towards 70-75% towards end FY 2014 with support from exports as well as domestic business, the company said.
SSWL has given a forward guidance of 30 lakh wheel sales for Q3 FY 2014. SSWL said that the company is setting a stiff target and expect to achieve it on the back of growth across all segments.
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, 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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