Steel Strip Wheels Q4 Results Review - Ebitda Margins To Be Driven By Value-Added Products: Axis Securities

Axis Securities Report

Steel Strips Wheels Ltd.’s revenue/Ebitda/profit after tax stood largely in-line with our estimates. Revenue stood at Rs 1,069 crore, up 6% YoY (down 4% QoQ).

Steel Strips Wheels reported Ebitda of Rs 110 crore, up 1% YoY (down 6% QoQ) and Ebitda Margins of 10.3%, down 51 bps YoY (23 bps QoQ).

This was led by higher personnel costs, other expenses being partly offset by higher gross margins (as % of sales).

The company’s PAT stood at Rs 49 crore, up 4% YoY (down 17% QoQ) in-line with our estimates. Steel Strips Wheels has recognised a one time gain on cessation of various trade liabilities in the books of AMW Autocomponent Ltd. (post merger).

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