SSWL achieved total wheel rim sales of 10.29 Lacs Vs 11.63 Lacs in June 2017 representing a YoY drop of 11.52%. The drop was majorly due to GST implementation in June and all the destocking being done by all across the OEMs.
Every segment got impacted by production cuts due to deadline of GST implementation and we expect to cover the loss in Q2 of FY 17-18. Q2 volumes in FY 16-17 were record high and we expect to beat this make new record in Q2 FY 17-18
The quarterly forecast for Q2 is shared below indicating good rebound from post GST implementation and we expect this to be led by very good growth in tractor and truck segment portfolio.
SSWL expect to sell highest Quarterly sales in Q2-FY18
|Sale volume (In Nos.) in Q2 FY 2017 (July-Sept 2016)||Expected Sale volume (In Nos.) in Q2 FY 2018 (July-Sept 2017)||Expected growth (%) in Q2 YoY|
|37.62 Lacs||39.0 Lacs||4%|
In terms of Value, the company has achieved gross turnover of Rs 112.45 Crs in June 2017 Vs 122.10 Crs in June 2016, there by recording a drop of 8% and achieved Net turnover of Rs.100.43 Crs in June 2017 Vs Rs. 109.83 Crs in June 2016, recording a drop of 8%. The drop was mainly due to GST implementation with destocking done by customer before June end deadline. We expect strong rebound in all segments in post GST period.
Segment wise Breakup of growth
|Segment||June Growth (YoY)|
|2 & 3 Wheelers||-6.6%|
Passenger car segment de-grew 8.8% in June 2017 YoY. The PV volumes fell by 8.8% with GST being the main trigger of volume destocking by customer and we expect this to rebound to high single digit in coming months.
Tractor volumes fell by 1% in June 2017 YoY. The tractor segment saw marginal drop in volumes and we expect to go to 20% volume growth in Q2 on expectation of normal rainfall and extremely healthy infrastructure spend helping the alternate use of tractor segment.
LCV & MHCV segment volumes dropped by 21% YoY in June 2017. The CV segment saw a drop in June 2017 due to GST with volumes expected to climb a minimum 30%-35% in Q2 with adjustment post GST.
2&3 wheelers segment fell by 6.6% in June 2017 YoY. This segment saw the drop and its only due to GST factor and we expect this to rebound to high single digit growth in coming month once GST implementation kicks in.
Exports volumes dropped by 37% in June 2017. Exports shipments were down 37% in June 2017. The exports fell due to ongoing holiday season starting in European region and will resume normal operations from July 2017.