Steel Strips Wheels receives nomination for €8 million business from European OEM

Steel Strips Wheels (SSWL) said in an exchange filing on Friday the company has received a nomination for steel wheel business from a leading European original equipment manufacturer (OEM).

The firm pointed out that the business value is close to €8 million which will be executed over a span of six years. SSWL said that series supplies are expected to commence from mid-year 2025 from the firm’s Chennai plant. Shares of the company were trading over 2.5% higher on Friday.

The company said it expects more businesses from global OEMs in the coming months which complements its strategy to grow its presence in the EU and the US OEM space.

Earlier this month, the firm announced a 6.6% year-on-year (YoY) increase in its net turnover at ₹338.22 crore for the month of April 2024. The company reported a 6.62% YoY rise in its gross turnover at ₹389.54 crore for the month. SSWL pointed out that two-wheeler and three-wheeler segments rose 29% YoY by value during the month. Meanwhile, the passenger cars segment grew 12% and the trucks segment saw a growth of 10% in April.

SSWL stated that the alloy wheels segment grew 5% while the tractors segment saw 1% growth during the month. At the same time, exports rose 8% by value.

SSWL is involved in designing and manufacturing automotive wheels, both under the steel and alloy categories. The company is based out of Chandigarh with manufacturing facilities in Punjab, Chennai, Jamshedpur, Gujarat, and Jharkhand.

During the third quarter of fiscal year 2024, the company reported an 18% YoY rise in its revenue from operations at ₹1,110 crore. Net profit rose 36% during the quarter to ₹59.53 crore.

Shares of the company fell nearly 14% since the beginning of the year. The stock has gained over 51% in the last one year.