Shares of Steel Strips Wheels Ltd surged as much as 13% intraday to touch a fresh 52-week high of ₹283 on Wednesday, following the company's robust June quarter earnings announcement. According to reports from NDTV Profit, the stock was trading 3.87% higher at ₹260.14 per share as of 2:01 p.m., significantly outperforming the benchmark Nifty which gained only 0.10%. The strong market response reflects investor confidence in the company's improved financial performance across key metrics.
The company delivered exceptional first quarter results for FY27, with consolidated net profit increasing 47.2% year-on-year to ₹69.5 crore compared with ₹47.2 crore in the corresponding period last year. As reported by NDTV Profit, revenue from operations rose 27% to ₹1,510 crore, up from ₹1,187 crore a year ago. EBITDA climbed 33.6% to ₹163 crore from ₹122 crore in the year-ago quarter, while EBITDA margin improved to 10.8% from 10.2%, indicating better operating efficiency and cost management capabilities. According to Business Standard, the company also reported profit before tax of ₹93.48 crore, marking a 52.94% increase from ₹61.12 crore in Q1 FY6. The latest earnings were driven by inventory destocking and a richer product mix, as reported by CNBC TV18, with revenue supported by higher sales in both domestic and export markets.
According to NDTV Profit data, the company's PBDT (Profit Before Depreciation and Tax) increased 41% to ₹131.73 crore from ₹93.56 crore in Q1 FY6, while PBT (Profit Before Tax) rose 53% to ₹93.48 crore from ₹61.13 crore. The operating profit margin (OPM) improved to 10.79% from 10.24% in the corresponding quarter last year, demonstrating enhanced operational efficiency and cost management capabilities. The margin expansion to 10.8% from 10.2% reflects better cost efficiencies and a favourable product mix. The company also features in a screener of stocks with high momentum scores, indicating strong investor interest in the stock's performance trajectory.
Despite the strong quarterly performance, the company had reported a flat net profit of ₹61 crore for Q4 FY6 compared with the corresponding period a year earlier. According to CNBC TV18, while the bottom line remained stable, the company recorded healthy topline growth during the quarter. Revenue from operations rose 19.5% year-on-year to ₹1,474 crore, up from ₹1,234 crore in the year-ago period, with EBITDA increasing 12% to ₹150 crore from ₹134 crore, though the EBITDA margin narrowed to 10.2% from 11% in the corresponding quarter last year.
