Steel Strips Wheels Limited (SSWL) shares surged to a 52-week high after the company reported a remarkable 209% increase in standalone net profit for the second quarter. The net profit rose to ₹119 crore from ₹39 crore in the same quarter last year, signaling strong financial health and operational success.
- SSWL’s net profit increased by 209% in Q2 compared to last year.
- Revenue from operations grew 61% to ₹1,930 crore in Q2.
- Operating profit (EBITDA) more than doubled to ₹235 crore.
- EBITDA margin improved by 280 basis points to 12.17%.
- Shares hit a 52-week high of ₹449, rising 15% in a single day.
- Company declared an interim dividend of ₹1.5 per share.
- Plans approved for a new manufacturing facility in Maharashtra.
What caused the surge in Steel Strips Wheels’ profit in Q2?
SSWL’s profit surge was mainly due to a strong increase in revenue and improved operational efficiency. The company’s revenue from operations rose by 61% to ₹1,930 crore in the second quarter of the current financial year, compared to ₹1,201 crore in the same period last year. This growth was supported by higher sales volumes and better pricing.
Moreover, the company’s earnings before interest, taxes, depreciation, and amortization (EBITDA) more than doubled to ₹235 crore. The EBITDA margin also improved by 280 basis points to 12.17%, indicating better cost management and operational performance.
How did the stock market react to SSWL’s Q2 results?
Following the announcement of the strong quarterly results, SSWL shares jumped as much as 15%, marking their biggest single-day gain since September 1. The shares reached a fresh 52-week high of ₹449 on the National Stock Exchange (NSE). As of midday trading, the shares were up 14% at ₹445, significantly outperforming the NIFTY50 index, which was down 1.2%.
What are SSWL’s future plans for expansion?
The company’s board approved a proposal to set up a greenfield manufacturing facility at Chhatrapati Sambhajinagar, Maharashtra. This new plant will focus on producing alloy wheels, steel wheels for passenger vehicles, and a hot stamping line. The estimated investment for this project is ₹1,400 crore, to be spread over 60 months.
Additionally, the board approved the renewal of a lease agreement with AMW Auto Component Limited, a wholly owned subsidiary, for up to five years starting November 26, 2026. This lease will allow SSWL to continue using premises on a leasehold basis under previously approved terms.
What other corporate actions did SSWL announce?
SSWL declared an interim dividend of ₹1.5 per share, rewarding shareholders amid strong financial performance. The company also appointed Pranav Jain, vice president of finance and accounts, as a senior management personnel, strengthening its leadership team.
Overall, Steel Strips Wheels Limited demonstrated robust growth and strategic planning in the recent quarter, leading to increased investor confidence and a strong market response.
