Steel & Alloy wheels manufacturer Steel Strips Wheels Ltd. expects its topline to grow between the mid-teens to the high-teens in FY23.

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The company, which caters to the likes of Hyundai, Kia, Tata Motors and M&M, expects revenue to grow between 15-18 percent for FY23 while it is targeting EBITDA to range between Rs 475 crore to Rs 480 crore for the full year.

For August, Steel Strips Wheels reported a 15 percent year-on-year growth in sales. Sale of alloy wheels doubled while that of trucks increased 80 percent from last year. "The primary demand is getting driven by the PV side, which is very strong and the backlog of orders from carmakers," Mohan Joshi of Steel Strips Wheels told CNBC TV 18 in an interaction.

Here are some key takeaways from the conversation:

Festive Season Hopes

For the upcoming festive season, Joshi is hopeful of the Commercial Vehicles segment also contributing to growth. The Alloys business is the company's strongest business division and is running at full capacity. Joshi expects the business to grow at 45-50 percent going forward, while the CV business can grow between 20-22 percent.

Reviving Exports

Even as exports remain a sour point for the company, the management remains optimistic. "We see some bottoming out happening in exports because of the geopolitical issues and we feel that the worst is over and behind us," Joshi said. He expects greenshoots from exports to kick in during the second half of FY23. The company is targeting Rs 600 crore in exports in FY23.

Strengthening The Alloy Business

The company is also planning a capex within the next seven to eight months to add 1M wheels capacity to the alloy business, which is currently running at full capacity. "With the order flow which is visible to us over the next 12 months, as soon as this capacity comes, close to 60 percent will already be sold out," he said. The company is also eyeing both organic and inorganic opportunities to boost growth.

Motor Sales Opportunity

Steel Strips Wheels is also foraying into the sale of motors, which the management projected to be a Rs 1,000 crore business. The management does not expect heavy capex for this business as it gears up for future growth opportunities in the EV space. Joshi expects that the industry is there to be won if one believes in the EV story over a two-to-three-year time horizon.

Tata Steel Not Saying "Tata"

Tata Steel currently holds 7 percent stake in the company and there have been no talks whether it wants to dilute its stake. The management says that Tata Steel is not only a strategic investor, but also a supplier. However, Joshi did mention the fact that promoter pledges, which have been bought down to 7-8 percent from over 52 percent earlier, are likely to come down to less than 5 percent by the end of FY23.

For the first quarter of FY23, Steel Strips Wheels reported a 50 percent growth in revenue while EBITDA increased 11.8 percent. Net profit declined nearly 6 percent which hurt operating margins. The management remains confident of the domestic business growing 25 percent while margins will better the FY22 levels.

Shares of Steel Strips Wheels traded 1.25 percent higher as of 14:45 pm and have gained just 4 percent this year.