Con-call Highlights – [#SteelStripsWheels]

Steel Strips Wheels Limited (SSWL) – Q4 FY24 Earnings Call Key Takeaways for Investors Financial Performance (Q4 FY24 vs. Q4 FY23 & FY24 vs. FY23): * Revenue: Q4 FY24 revenue increased 6.3% YoY to Rs. 1,068.7 Crores. FY24 revenue increased 7.8% YoY to Rs. 4,357.1 Crores. * EBITDA: Q4 FY24 EBITDA increased 2.4% YoY to Rs. 111.1 Crores. FY24 EBITDA increased 5.1% YoY to Rs. 465.2 Crores. * PAT: Q4 FY24 PAT increased 27.6% YoY to Rs. 60.4 Crores. FY24 PAT increased 13.5% YoY to Rs. 219.9 Crores. Operational Performance (FY24): * Achieved highest ever yearly revenues, EBITDA, net profit and sales volume. * Experienced highest ever domestic CV wheel and alloy wheel volumes. * Witnessed traction in alloy wheel exports, with volume crossing 2 lakhs. * Successfully shifted to new tax regime, reducing effective tax rate to 25.17% from 34.94%. * Completed acquisition of AMW Auto Components Ltd. via NCLT order. * Implemented Solar/Hybrid project with expected annual savings of Rs. 9.5 Crores. * Increased steel wheel capacity to ~20.5 million wheels. * Expanding alloy wheel capacity to 4.8 million wheels at Mehsana plant. * Scheduled production start at new brownfield expansion at Jamshedpur plant by June 2024, adding capacity of 0.5 million wheels. * Anticipating revenue from aluminum knuckle production starting from September 2024 onwards. * Secured a nomination from Maruti Suzuki for alloy wheels and in discussions for additional business opportunities. Future Outlook: * Management expects 10% YoY revenue growth in FY25. * Projecting growth in domestic CV and aluminum wheel segments and the two-wheeler industry. * Forecasting growth in the passenger car steel wheels and tractor segments. * Anticipating 10% growth in exports business, with new product lines like off-road vehicle wheels being added. * **Exploring the potential for a new factory near Maruti Suzuki in Haryana based on further business development. Concerns: * Uncertainty surrounding the impact of the election year on CV industry demand. * Competition from Asian manufacturers in export markets. * Potential cost pressures, particularly employee costs rising faster than revenues. Other Points: * Management focused on providing volume-based guidance due to volatility in raw material prices. * Emphasis on shifting sales mix towards higher-margin products like alloy wheels and exports. * Highlighting the importance of operational optimization through automation and robotics to manage costs. * Positive outlook for aluminum knuckles, with revenue expected to more than double in the coming years. * Successfully negotiated price corrections with OEMs in the passenger car steel wheel segment. * Company aims to reduce debt levels primarily through internal accruals and scheduled repayments. Capex for the next year can be funded entirely through accruals.