Steel Strips Wheels gains 12% despite fall in Dec sales

Steel wheel rims manufacturer Steel Strips Wheels gained as much as 12 percent intraday on Thursday despite fall in sales numbers for December.

The company sold 7.65 lakh wheel rims in December, down 1.5 percent compared to previous month and dropped by 18 percent compared to a year ago period.

Gross sale of the company in terms of value is Rs 75.75 crore during December 2012 as against Rs 101.77 crore in December 2011. It has exported 88,746 wheel rims in December 2012 as against 1,01,893 during December 2011.

While explaining the fall in sale of rims, the company said, "Due to overall recession in the four wheeler industry, weak sentiments for passenger vehicles as well as commercial vehicles, high interest rates and slower economic growth, sale of almost all OEMs manufacturers witnessed downfall, which effects the performance of the company in December."

Steel Strips Wheels said, "We expect to achieve sale of 8.3 steel wheel rims in January 2013."

The stock has been gained more than 17 percent in last five sessions. At 10:21 hours IST, the share price was up 11.50 percent to Rs 208.45 amid large volumes.

Trading volumes increased quite sharply to 33,923 equity shares as compared to its five day average of 2,298 shares.

Also Read
Geometric surges on acquisition of 3Cap Technologies
Jet Air rises 6% on impending stake sale deal with Etihad