SSWL registers 2% turnover growth in December led favourable product mix of truck wheels.
SSWL achieved total wheel rim sales of 10.18 Lacs Vs 10.42 Lacs in December 2015 representing a YoY contraction of 2%. The impact of demonetization was well absorbed by the company due to increase in market share with every customer. We expect the 4th quarter to be better as the knee jerk reaction passes away and normalcy will return for the segments with easing cash crunch.
In terms of Value, the company has achieved gross turnover of Rs 109.89Crs in December 2016 Vs 107.60 Crs in December 2015, there by recording growth of 2% and achieved Net turnover of Rs.98.97 Crs in December 2016 Vs Rs. 97.00 Crs in December 2015, recording a growth of 2%. The turnover of the company will grow by a minimum 20% going ahead into last quarter flowing into next financial year.
Segment wise Breakup of growth
| Segment | Aug Growth (YoY) |
| Passenger Car | +8% |
| Tractor | +34% |
| Truck | +6% |
| 2&3 Wheelers | -32% |
| Exports | -10% |
| Overall | -2% |
Passenger car segment grew 8% in December 2016 YoY. The PV segment grew by 8% despite the pressure of demonetization and we expect this trend to improve with industry coming to normalcy post the demonetization move.8-10% growth can be expected in the last quarter of FY16-17.
LCV & MHCV segment volumes grew by 6% YoY in December 2016. The CV segment saw a decent growth despite the cash crunch and we expect the infrastructure theme to work for the segment and bring growth to high single digit levels. The regulatory changes are also expected to keep the growth base intact.
Domestic Tractor segment volumes grew by 34% in December 2016 YoY. The tractor segment saw growth of 34%and we expect the last quarter to be also good with good sowing aiding to growth in coming months. The infrastructure theme help this segment as well and we expect 25% growth in the last quarter as an achievable benchmark.
2&3 wheelers segment de-grew by 32% in December 2016 YoY. This segment got the largest impact of demonetization due the large income segment getting hit by the move. we expect the impact to reduce gradually over this quarter and get to normal growth by March 2017.
Exports volumes dropped by 10% in December 2016. Exports shipments were down 10% in December 2016 due to very high base of last year and it will normalize going ahead with many new exports orders starting from the month of December 2016. The company received good caravan wheel business recently to get back to the trend line growth.