SSWL achieved January 2020 total wheel rim sales of 13.45 Lacs Vs 13.40 Lacs in January 2019 representing a growth of 1% YoY. The MoM growth in January 2020 was 13% and its consistent with our forward statement on sustained improvement in sales volumes going into final quarter of the financial year. The volume of January is the highest in FY 19-20 and we expect the turnover to follow the same soon with favourable product mix being achieved over coming 2-3 months.
SSWL has achieved gross turnover of Rs 179.90 Crs in January 2020 Vs 200.00 Crs in January 2019, there by recording a de-growth of 10% and achieved Net turnover of Rs.147.20 Crs in January 2020 Vs Rs.163.96 Crs in January 2019, recording a de-growth of 10%.
The revenue also saw MoM growth of 16% with favourable product mix. Mehsana contributed to this quarter growth and we expect its contribution to increase each month going ahead as a proportion to total sales.
Mehsana Alloy Wheel plant Recorded highest sales every in January 2020 with plant reaching almost 50% utilization we expect Mehsana to hit 80% utilization in February with customer firm schedule.
Segment wise Breakup of growth
Segment wise Breakup of growth
|Segment||January Growth (YoY)|
|2 & 3 Wheelers||-16%|
Passenger car segment volumes rose 14% in January 2020 YoY. The PV volumes saw better that industry growth with SSWL gaining big market share due to steel and alloy penetration with domestic customers. We expect to see double digit growth in this segment for sustained period over coming FY also. SSWL also expects to gain larger presence in alloy wheel segment and target to become a major alloy wheel suppliers in FY 20-21 with firm order commitment with customers.
2 & 3 Wheelers Segment fell 16%. The 2/3 wheeler segment will be volatile till march 2020 due to inventory management of all BS4 stocks and the numbers are not comparable to last year. Heavy liquidation of entire pipeline inventory will be done to clear all old technology stock the regularization will start from March mid 2020 once 100% BS6 models will be rolled out.
Exports Segment rose by 34%. The export segment maintained high momentum and now rolling out almost record levels and SSWL expects to maintain this run rate and march forward to clock highest ever export sales in this FY.
Tractor volumes fell by 12% in January 2020 YoY. The tractor segment saw a drop in volumes YoY with seasonality still playing the trend with inventory correction happening of the pipeline. We expect the record crop yield in upcoming harvest season and better farm income will result in good pickup in this segment going ahead.
Commercial Vehicles segment volumes fell by 41% YoY in January 2020. The CV makers are treading very cautiously in line with BS-VI roll out. The month of January was best in last 6 months with some pre buying happening in CV segment before the BS6 roll out starting in April 2020. The next big trigger can be the Scrappage policy which is awaiting the Govt. Clearance. This can big a big boost to the entire CV segment coming in FY 20-21.