SSWL achieved July 2019 total wheel rim sales of 12.59 Lacs Vs 13.59 Lacs in July 2018 representing a de-growth of 7% YoY. The July month saw recovery in many section of automotive market as compared to June and we expect this recovery to continue to going ahead for this financial year. There was a growth of 12% MoM in total Volumes with both exports and domestic markets showing signs of improvement.
Sales trend of SSWL
The company has achieved its highest sales in last 6 months in July 2019 and we expect this trend to continue to improve going ahead each month with exports helping to offset the domestic slowdown in markets. The festive season coming ahead will also support domestic market conditions.
|February 2019||March 2019||April 2019||May 2019||June 2019||July 2019|
|Total Sales Volume||12.83Lacs||10.80Lacs||11.99Lacs||12.10Lacs||11.28Lacs||12.59Lacs|
|Export Sale Volume||1.07Lacs||0.91Lacs||1.50Lacs||1.72Lacs||2.05Lacs||2.04Lacs|
SSWL has achieved gross turnover of Rs. 162.77 Crs in July 2019 Vs 185.07 Crs in July 2018, there by recording a de-growth of 12% and achieved Net turnover of Rs.134.75 Crs in July 2019 Vs Rs.152.79 Crs in July 2018, recording a de-growth of 12%.
Chennai car Plant achieved Highest Production and Sale in July 2019 with capacity utilization of 95% and we expect to hit 100% utilization from August onwards on very strong exports demand for US and EU customers.
Segment wise Breakup of growth
|Segment||July Growth (YoY)|
|2 & 3 Wheelers||+1%|
Passenger car segment volumes fell 17% in July 2019 YoY. The PV volumes were down 17% and the pace of drop has receded and we expect this to show signs of improvement going into Q2 and Q3 with all across the car makers trying to cut production for inventory dilution and the festive season push is expected give desired the sales push.
Exports Segment rose by 75%. The segment continued to witness robust growth in July 2019 with SSWL targeting all global locations to penetrate the overseas customers. We expect exports with SSWL pushing aggressively towards global locations for larger penetration of car wheels. We expect FY 19-20 to put the export segment sales to be higher in the rage of 50-60% as compared to last year and will compensate for all the loss of domestic auto markets drop in car segment.
Tractor volumes fell by 9% in July 2019 YoY. The tractor segment saw a drop in volumes YoY and the trend on a monthly basis is very encouraging with every month sales improving. With monsoons running good in country, we expect this trend to be consistent.
2 & 3 Wheelers Segment grew by 1%. The segment is showing extremely encouraging signs and we expect this segment continue to outshine the other sectors. We expect highest sales ever for this segment in Q2 of FY 19-20.
Commercial Vehicles segment volumes fell by 37% YoY in July 2019. The CV segment continue to see the bad patch with maximum inventory reduction measures being taken by truck makers. We expect the recovery to be starting from q3 on pre purchase segment to show some signs of stability.