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Shares of Steel Strips Wheels, a leading manufacturer of automotive wheel rims, rose nearly 3 percent on Monday after the company posted a 43 percent year-on-year jump in its sales turnover in December 2022.

The company achieved a net turnover of Rs 334.41 crore in December 2022 as compared to Rs 234.54 crore in December 2021, recording a growth of 42.58 percent year-on-year.

The company also reported a 45.08 percent increase in gross turnover at Rs 413.76 crore in December 2022 vs Rs. 285.19 crore in December 2021.

As per the segment-wise break-up, monthly sales for the truck segment surged 113 percent year-on-year in December 2022 in terms of value, followed by tractors (73 percent), alloy wheels (69 percent), and passenger cars (10 percent).

However, sales turnover from exports dropped 45 percent year-on-year in December 2022 and the sales turnover from two as well as three-wheelers too slipped 7 percent.

The company on Monday informed the bourses that its promoters reduced the number of pledged shares. The company informed that 18 lakh pledged shares were released on December 31, 2022.

Accordingly, the total number of shares pledged has reduced to 1.36 crore, which is 8.7 percent of the total paid-up capital of the company and 13.90 percent of the total promoter shareholding.

Before the pledged shares were released, the promoters along with the persons acting in concert (PAC) held 9.79 crore equity shares in Steel Strips Wheels, which is 62.6 percent of the total paid-up capital of the company.

Out of this, 1.54 crore equity shares were pledged which is 9.85 percent of the total paid-up capital of the company and 15.74 percent of total promoter shareholding.

Last week, Steel Strips Wheels announced that it prepaid Rs 81.26 crore of its long-term debt. After this prepayment, along with normal repayments for the period, the company’s long-term debt has reduced to Rs 270.20 crore from Rs 374.39 crore as on March 31, 2022.

The company said that it was working to further pre-pay its long-term loans in the next quarter to remain on course with its target of achieving financial leverage of sub 1.5 times total debt.

SSWL operates in the automotive wheels segment and manufactures steel wheel rims catering to different segments of the automobile industry.

Shares of Steel Strips Wheels are trading2.73 percent higher at Rs 163.70.

(Edited by : Rukmani Krishna)