SSWL's June 2025 Update: Sales Dip, Alloy Products Shine
Today, we’re taking a closer look at Steel Strips Wheels Limited (SSWL), a prominent player in India’s automotive wheel manufacturing sector, known for supplying a wide range of wheels from passenger cars to tractors and commercial vehicles. The company just released its monthly business updates for June 2025, and it’s a mixed bag of results worth unpacking.
At the time of this announcement, SSWL’s stock was trading at ₹255.05, seeing a modest decline of 2.4%. Let’s dive into what’s driving the numbers.
Overall Performance: A Slight Dip
For June 2025, SSWL reported a net turnover of ₹350.67 Crores, which is a 2.08% year-over-year (YoY) decline compared to ₹358.11 Crores in June 2024. Gross turnover also saw a slight dip, coming in at ₹426.31 Crores against ₹434.21 Crores last year, marking a 1.82% YoY decline. So, overall, the month of June 2025 saw a minor contraction.
Quarterly Bright Spot!
While June had its challenges, the first quarter of FY26 (April-June 2025) painted a more positive picture. SSWL’s sales by value actually grew by a healthy 14.2% YoY for Q1 FY26, indicating strong overall momentum despite those specific June headwinds. It seems the other months in the quarter performed quite well to offset June’s slight slowdown.
Segment by Segment: The Nitty-Gritty
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Commercial Vehicles Hit a Speed Bump: This segment experienced a significant 22% YoY decline in sales for June 2025. The company attributed this largely to the non-availability of air-conditioned cabins, which impacted their production and delivery schedules. This highlights how specific supply chain issues can ripple through the auto sector.
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Exports Facing Tariffs: Export sales also saw a decline as customers deferred shipments. Why? They’re waiting for clarity on revised U.S. tariff policies on Indian goods, which are expected to take effect from July 9th, 2025. This kind of trade policy uncertainty can definitely put a brake on international orders.
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EVs and Rare Earth Materials: The passenger vehicles and 2-wheeler/3-wheeler electric vehicle (EV) segments experienced de-growth in June due to concerns over rare earth material supply. These materials are crucial for components like the powerful magnets in EV motors. However, there’s a silver lining for 2-wheeler EVs, which are already showing early signs of recovery starting July 2025!
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Alloy Products: The Shining Star! Amidst the declines, the alloy products segment absolutely stood out. It posted an impressive 41% growth by value and a solid 23% growth by volume year-over-year. This is a clear indicator of strong demand and performance in this specific product line.
Here’s a detailed look at how each segment performed in June 2025:
| Segment Wise (Domestic + Exports) | Jun-25 Growth (by Value) (YoY) | Jun-25 Growth (by Volume) (YoY) |
|---|---|---|
| Exports (Overall) | -8% | -25% |
| Alloy Products | 41% | 23% |
| Tractor | -9% | -4% |
| Passenger Car - Steel | -21% | -18% |
| 2&3 Wheeler | -23% | -24% |
| Truck | -28% | -22% |
| Overall | -2% | -12% |
The Takeaway
While June 2025 presented some challenges for SSWL, particularly in exports and commercial vehicles due to specific external factors, the robust performance of their alloy products and a strong overall first quarter for FY26 offer reasons for optimism. The quick recovery signs in 2-wheeler EVs are also a positive sign for the future.
It’s a great example of how different parts of a business can perform uniquely, even within the same month. Keep an eye on how these trends develop in the coming quarters!
Happy investing!
source: Corporate Announcement
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