Thread by @FinterestC

#Didyouknow
Steel Strips Wheels Ltd. is a leading supplier of steel wheel rims in India?
Here's a thread on the company.
#steelstrips #steelwheelrims #alloywheels #stockmarkets #finance #investment

1) About the company
It is engaged in designing, manufacturing and marketing single
piece steel wheel rims for Passenger cars, Utility vehicles, 2/3 wheelers, Tractors, Light/Heavy commercial vehicles/OTRs and Alloy Rims, in the range of 10 to 30 inches dia.

2) Operational Highlights
Aluminium alloy wheels (included in PV) had a contribution 10% to the overall volumes, while the remaining came from steel wheel rims with PV segment accounting 66.7%, CV segment 8.7%, Tractors 9.1%, OTR 0.3% and 2W 5% respectively.

3)Alloy wheels and export revenue contributed to 47% of revenue in Q1 FY22.
Capacity utilization of steel wheel rims was 78.2% in Q1 FY22. Dapper plant, dedicated to 2W, PV and tractors, operated at 85.2% utilisation and Chennai PV plant at 86.2%.

4) Brownfield capacity utilization at Al-alloy wheel plants is currently producing 0.18 Cr. wheel rims, which will increase to 0.24 Cr. wheel rims by Sept./Oct.21.It has undertaken de-bottlenecking at Chennai plant which led to 100k wheel rims per month and revenue of Rs.9-10 Cr.

5) Financial Performance
SSWL reported an outstanding performance in Q1 FY22 primarily led by strong improvement in alloy wheels
and exports. The company produced 0.04 Cr. Aluminium alloy wheels, while contribution to revenue stood at
20% at Rs. 128 Cr.

6) Export volumes demonstrated a figure of 16 Lc wheel rims, a 35% QoQ growth, while the revenue from exports
in Q1 FY22 stood at Rs. 181 Cr., at 70% of export revenue (Rs.270 Cr.) of FY21.
Alloy wheels contributed a 26% share in revenue of Q1 FY22, up from 23% in Q4 FY21.

7) It has shown a stellar growth of 464% (YoY) in revenue. As Alloy wheels are high-margin product, designing the product mix with higher contribution of alloy wheels has helped to expand EBITDA margin by 212 bps (QoQ) to 14.4%,and 4083% YoY growth in EBITDA.

8)Growth Drivers
Alloy wheel business is expected to expand as a result of long-term contracts with Hyundai, KIA Motors, Tata Motors, Mahindra, Ford & Renault Nissan. In FY 21-22, SSWL expects to reach the revenue from Alloy wheels to reach Rs.1,150 crs.

9)CVD on Chinese Wheels and CVD in Europe and USA has made space for a huge potential market of High Speed Trailer steel wheels. The CV segment of the company is expected to contribute about Rs. 500-800 Cr. To the topline when the cycle turns around.

10) The margins of Export business are substantially accretive to EBITDA.
Scrappage Policy implementation is most likely expected to raise the demand of CV Wheels, owing to scrappage of old trucks.

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