SSWL skids after Q1 PAT slips 14% YoY to Rs 44 cr

Steel Strips Wheels (SSWL) fell 2.98% to Rs 818.45 after the company's net profit dropped 13.61% to Rs 44.13 crore in Q1 FY23 compared with 51.08 crore in Q1 FY22.

Revenue from operations climbed 49.84% to Rs 1016.09 crore in Q1 June 2022 as against Rs 678.13 crore in the corresponding quarter previous year.

Profit before tax stood at Rs 71.04 crore in Q1 FY23, up 13.23% as against Rs 62.74 crore reported in Q1 FY22.

Total expenses grew 53.01% to Rs 945.08 crore in Q1 FY23 over Q1 FY22. During the quarter, the company's cost of material consumed jumped 51.23% to Rs 697.02 crore and employee benefits expenses surged 37.59% to Rs 65.22 crore.

Further, the company's board approved 5-for-1 stock split. The company will split each share of face value of Rs 5 each into 5 equity shares of face value of Re 1 each.

Earlier in the day, India Ratings and Research upgraded the company's long-term issuer rating to 'IND A+' from 'IND A-'. India Ratings said that the upgrade follows a substantial improvement in SSWL's credit metrics on account of a solid improvement in the operating performance, and an increased share of higher-margin business (alloy + exports) in the revenue, leading to a significant improvement in business profile.

SSWL is engaged in the manufacturing of steel wheel rims catering to different segments of automobile industry. The firm operates in automotive wheels segment. Its geographical segments include India and overseas.

Powered by Capital Market - Live News