Steel Strips Wheels extends gain after highest-ever monthly sales in Feb

Shares of Steel Strips Wheels Limited (SSWL) hit their 52-week high level of Rs 774, up 9 per cent on the BSE in intra-day trade on Tuesday. Thus far in March, the stock of auto ancillary company has rallied 22 per cent after it recorded the highest-ever monthly sales in February 2021.

SSWL had achieved a net turnover of Rs 214.45 crore in February 2021, up 55.65 per cent y-o-y. The company has achieved 17 per cent year on year (YoY) growth in wheel rim sales of 1.52 million against 1.30 million in the corresponding month of previous year.

Passenger vehicle (PV) volumes, according to SSWL, continued to climb saw with a rise in demand demand despite semiconductor shortage and a hope that the upward growth for PV segment in the January-March quarter (Q4) quarter will remain robust. The commercial vehicle (CV) segment reported 81 per cent YoY growth and the segment is expected to witness momentum going ahead in coming months with scrappage policy in place, it added.

Meanwhile in separate regulatory filing, SSWL informed stock exchanges that on March 3, 2021, the promoters released 0.20 million shares from the pledge and accordingly, now the number of shares pledged has been reduced to 3.9 million, which is 25.06 per cent of total paid up capital of the company and 39.93 per cent of total promoter shareholding.

The promoters along with the persons acting in concert holds 9.8 million equity shares in SSWL, which is 62.77 per cent of the total paid up capital of the company and out of which 4.11 million equity shares were pledged which is 26.34 per cent of total paid up capital of the company and 41.97 per cent of total promoter shareholding.

At 03:10 pm; SSWL was trading 4 per cent higher at Rs 736 on the BSE as compared to 1.1 per cent rise in the S&P BSE Sensex. The trading volumes more-than-doubled with a combined 142,000 equity shares changing hands on the NSE and BSE.

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