Steel Strip Wheels -
Q4 and FY 24 concall highlights -
Total manufacturing capacity -
Steel Wheels - 200 lakh @ 78 pc utilisation. This capacity is slated to expand to 270 lakhs in FY 25
Alloy wheels - 36 lakh @ 82 pc utilisation. This capacity is slated to expand to 48 lakhs in FY 25
No of manufacturing plants - 05
Sales contribution from Steel : Alloy wheels @ 72:28 vs 69:31 in FY 23 ( in value terms )
Domestic PVs mkt share @ 42 pc
MHCV mkt share @ 61 pc
Tractor mkt share @ 42 pc
OTR mkt share @ 70 pc
Key models to which company is supplying alloy wheels to include - Creta, Alcazar, Venue, Carnival, Sonnet, Nexon, Punch, Salvia, Astor, Verna, Aura. Company is in talks with Maruti Suzuki for supply of alloy wheels. Supplies may commence by next FY
Export : Domestic revenues breakup
@ 15:85
Export sales grew by 116 pc from 293 to 634 cr in FY 24
Q4 financial outcomes -
Sales - 1069 vs 1005 cr, up 6 pc
EBITDA - 111 vs 108 cr, up 2.5 pc ( margins @ 10.4 vs 10.8 pc )
PAT - 60 vs 47 cr
Alloy wheel volumes @ 8 vs 7 lakh
Steel wheel volumes @ 39 vs 38 lakh
FY 24 financial outcomes -
Sales - 4357 vs 4041 cr, up 8 pc
EBITDA - 465 vs 443 cr, up 5 pc ( margins @ 10.7 vs 11 pc )
PAT - 220 vs 194 cr, up 13 pc ( due lower tax outgo as the company has opted for new tax regime )
Alloy wheel volumes @ 30 vs 28 lakh
Steel wheel volumes @ 160 vs 148 lakh
Long term Debt @ 487 cr. Total Debt @ 1048 cr
( due aggressive incremental Capex and acquisition of AMW autocomponents )
Cash on books @ 31 cr
Completed the acquisition of AMW autocomponents in FY 25 ( they also make steel wheels )
Seeing slowdown in CV sales in Q1 due ongoing elections
Company looking to sell 200 lakh wheels
( alloy + steel ) in FY 25 vs 190 lakh in FY 24. Expecting 10 pc growth in the exports business. Alloy wheels export business doing well. Overall topline growth guidance for FY 25 is also @ 10 pc
Expect to start generating revenues from their Aluminium Knuckles business. SSWL is the first company in India to make Al-Knuckles. It’s an import substitute product. Have signed up with 2 OEMs for supply of these Knuckles ( mainly used in SUVs ). Expecting to do a business of around 35 cr in FY 25, 70 cr in FY 26 and around 140 cr in FY 27 from this segment
Expecting the growth rates to increase in the alloy wheels segment wef FY 25 ( that should be margin accretive )
Company did face a lot of pricing issues wrt their steel wheels business in FY 24. They r in talks with 2 major OEMs for a price revision. They r hopeful of a positive outcome in near future. Also in talks with Maruti-Suzuki for supply of alloy wheels. That may also materialise going forward. These are key positive triggers lined up for the company
The current debt figures are likely to be the peak debt figures. Not planning to take on any additional debt
In FY 25 - growth is mainly gonna come from tractor wheels, exports and alloy wheels business - all these r margin accretive ( vs domestic steel wheels business for PVs + CVs ) - this is likely to have a positive impact on EBITDA margins. Plus there r fair chances of breakthrough on the price negotiations that the company is having with OEMs for domestic steel wheel pricing
Company’s main competitors for exports are based out of Malaysia, Vietnam. However, they do have a higher freight disadvantage vs an Indian manufacturer
Disc: holding, biased, not SEBI registered
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