SSWL achieved June 2019 total wheel rim sales of 11.28 Lacs Vs 12.66 Lacs in June 2018 representing a de-growth of 10% YoY. The June month had a shutdown coupled with major inventory reduction exercise going on at all car manufacturer’s end. We expect this to continue in July and come to normal levels of inventory by July to normalize production.
SSWL has achieved gross turnover of Rs 168.34 Crs in June 2019 Vs 197.60 Crs in June 2018, there by recording a de-growth of 15% and achieved Net turnover of Rs.139.54 Crs in June 2019 Vs Rs.155.96 Crs in June 2018, recording a de-growth of 10%.
Q2 of 19-20 will be the record quarter for the organization with highest eve volume for the company with record volumes for exports. We expect the Dappar plant and Chennai car plants to run at 100% utilization in q2 of 19-20 onwards. The export segment will make good for the entire loss of production of domestic car and 2-3 wheelers and will ensure 100% utilization of the production facilities.
Segment wise Breakup of growth
|Segment||June Growth (YoY)|
|2 & 3 Wheelers||-9%|
Passenger car segment volumes fell 22% in June 2019 YoY. The PV volumes were down 22% as the inventory reduction is materially being pushed by all automakers and we expect the push to be over in July to come to normal levels of inventory
Exports Segment rose by 91%. The segment continued to witness robust growth in June 2019 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 28% in June 2019 YoY. The tractor segment saw a drop in volumes pre-monsoon playing not so good for the farm segment we expect to get some good news from this front with next month’s catching some of the lost ground.
2 & 3 Wheelers Segment fell by 9%. The sales for this segment are consistently improving MoM and inventory levels are reaching normalized level to stop reporting negative growth in coming month. We expect the NBFC led impact also normalizing for this segment.
Commercial Vehicles segment volumes fell by 28% YoY in June 2019. The CV segment continue to see the bad patch with maximum impact of NBFC being felt by this segment. The situation of inventory is still high at CV segment will take another few months to normalize. The BS-VI pre sales should start to take over from September onwards and some push on the sales will be seen on this account.