Steel Strips Wheel announced results that showed weakening performance, with net profit falling both YoY and QoQ by 32% and 26% respectively. The company said demand has been considerably impacted by a shutdown from car manufacturers throughout the month of June, which are struggling with excess inventory and slowing demand. SSWL is expecting auto demand to restore to normal levels in July, The company saw sharp double digit declines in car, tractor and truck growth.

The company noted that the  PAT includes the increase in depreciation from last year of Rs 2.48 crore on account of  the Mehsana alloy wheel plant. 

SSWL also insisted that Q2 of FY20 is set to be a strong quarter for the company, and that 'the export segment will make good for the entire loss of production of domestic car and 2-3 wheelers' and 'will ensure 100% utilization of the production facilities'. Overall in the June quarter, the company said, exports grew 143% YoY, For the full results dashboard click here.

Segment June Growth (YoY) - month available. Full segment results yet to be released 

Passenger Car -22%

Exports +91%

Tractor -28%

Truck -28%

2 & 3 Wheelers -9%

Overall -10%