The company said its profits rose to Rs 28.75 crore during the quarter, surging 357 per cent over Rs 6.29 crore that it reported in the same quarter last year. Quarter on quarter, its profits more than doubled.
Revenue of the company increased 52.66 per cent to Rs 524.54 crore from Rs 343.60 crore in the year ago period. The main driver of the profit growth was sharp reduction in expenses towards inventory and stock in trade.
Shares of the company gained 2.22 per cent to Rs 663.75 on the BSE, following the result announcement.
Earlier, thanks to the pick up in auto sales and expected robust demand, the company achieved gross turnover of Rs 229.19 crore in December 2020 versus Rs 153.78 crore in December 2019, thereby recording a growth of 49 per cent YoY.
The company added that its alloy wheel segment posted highest ever sales in December, growing by 481 per cent in terms of volume. Tractor wheel sales grew by 69 per cent.
“Exports-segment volume rose by 2 per cent. The export segment can offer further upside to sales numbers but is facing headwinds of supply chain issues pertaining to container availability and it is expected to improve going into next quarter and we expect the trend to continue with steep increase in the US and the EU in Q4,” the company said in a statement.
Steel Strips Wheels is based out of Chandigarh with manufacturing facilities at Dappar (Punjab), Oragadam (Chennai), Jamshedpur (Jharkhand), Mehsana (Gujarat) and Saraikela (Jharkhand). These plants have a combined manufacturing capacity of over 20 million wheels per annum.