Steel Strips Wheels Limited (SSWL) witnessed a decline in its share price following the announcement of its Q3 FY25 results. The company’s financial performance reflects mixed results, with a slight decline in revenue and net profit amidst challenging market conditions.
Key Financial Highlights:
- Revenue from Operations:
- Q3 FY25: ₹1,074.68 crore
- QoQ: Decreased by 2.2% (₹1,095.10 crore in Q2 FY25)
- YoY: Decreased by 3.3% (₹1,111.03 crore in Q3 FY24)
- Total Income:
- Q3 FY25: ₹1,075.04 crore
- QoQ: Decreased by 2.0%
- YoY: Decreased by 3.2%
- Profit Before Tax (PBT):
- Q3 FY25: ₹64.35 crore
- QoQ: Increased by 4.0% (₹61.92 crore in Q2 FY25)
- YoY: Decreased by 9.3% (₹70.66 crore in Q3 FY24)
- Net Profit:
- Q3 FY25: ₹47.71 crore
- QoQ: Increased by 3.5% (₹46.10 crore in Q2 FY25)
- YoY: Decreased by 19.6% (₹59.41 crore in Q3 FY24)
- Total Expenses:
- Q3 FY25: ₹1,010.53 crore
- YoY: Reduced from ₹1,041.19 crore in Q3 FY24
Operational Insights:
- Alloy Wheel Volumes: Grew by 10.7% in Q3 FY25, indicating strong operational performance.
- EBITDA: ₹121 crore in Q3 FY25, with a margin of 11.2%.
- Exports: Achieved ₹404 crore in exports for the nine-month period, with expectations for increased momentum in Q4.
- New Initiatives: Mass production of aluminum knuckles commenced during Q3, contributing to product diversification.
Nine-Month Performance (April – December 2024):
- Total Income: ₹3,197.22 crore (YoY decline of 3.0%)
- Net Profit: ₹134.63 crore, down 15.4% YoY (₹159.12 crore in the same period last year).
Commentary:
Despite industry challenges, SSWL’s operational initiatives, including alloy wheel volume growth and product diversification, demonstrate resilience. The company’s focus on exports and new product lines, such as aluminum knuckles, positions it for recovery in upcoming quarters.
Market Reaction:
SSWL shares declined over 3% following the results, trading at ₹198.26 as of January 17, 2025. Investors appear cautious due to the YoY decline in revenue and profit.
Disclaimer: The above information is for informational purposes only and should not be considered financial or investment advice. Always consult with a professional before making investment decisions.
