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Steel Strips Wheels Limited (SSWL) has announced a significant development in its ongoing litigation:

• The Hon'ble High Court of Gujarat at Ahmedabad, through an order dated 13 June 2025, ruled in favor of SSWL regarding a Show Cause Notice (SCN) received from the Central GST and Central Excise, Gandhinagar.
• The company's petition against the SCN succeeded due to the applicability of Notification No. 20/2024, which omitted Rule 96(10) and applies to all pending cases as of 8 October 2024.
• Consequently, the impugned Show Cause Notice and related orders-in-original have been quashed and set aside.
• This order entitles SSWL to claim the Integrated Goods and Services Tax (IGST) paid on the export of goods as per Rule 96 of the Central Goods and Services Tax (CGST) Rules, 2017.
• As a result, the company is now eligible to apply to the GST Department to set aside the SCN and close the outstanding demand, which includes a GST refund of ₹ 7.62 crore and a reversal of interest and penalty amounting to ₹ 15.24 crore.
• The order was received by the company on 14 June 2025.

Steel Strips Wheels Limited (SSWL) announced significant year-on-year (YOY) growth in its sales for May 2025, as detailed in its monthly business update:

• Net turnover for May 2025 reached ₹470.35 crore, marking a 19.97% increase compared to ₹342.04 crore in May 2024.
• Gross turnover grew by 19.36% YOY, amounting to ₹500.76 crore in May 2025 against ₹419.55 crore in May 2024.
• The company achieved an overall sales volume growth of 12% YOY.
• Key segment-wise growth (YOY by volume and value) for May 2025 includes:
  • Exports: Volume up by 48%, Value up by 64%.
  • Truck: Volume up by 33%, Value up by 26%.
  • Alloy Segment: Volume up by 29%, Value up by 43%.
  • Passenger Car: Volume up by 1%, Value up by 3%.
  • Tractor: Volume up by 8%, Value up by 0%.
  • 2 & 3 Wheelers: Volume down by 23%, Value down by 16%.

• Financial Highlights for Q4 FY25: Steel Strips Wheels Limited (SSWL) reported its highest ever sales, with revenues reaching ₹1,233 crores, a 15.5% increase year-on-year (YoY) from ₹1,068.7 crores. EBITDA grew by 21% YoY to ₹134.5 crores, and Profit Before Tax (PBT) increased by 22.5% to ₹83 crores from ₹67.8 crores. Net Profit (PAT) was ₹61.7 crores, slightly up from ₹60.4 crores in the same quarter last year, with modest growth attributed to a transition to the new tax regime. Export revenue saw a significant revival, growing 22% to ₹157 crores from ₹129 crores.
• Full Financial Year FY25 Performance: The company recorded a revenue of ₹4,429 crores, reflecting a modest growth of 1.7% YoY. EBITDA for FY25 stood at ₹486.8 crores, up 4.6% YoY, with EBITDA margins improving by 30 basis points to 11% (from 10.7%), driven by a focus on higher realization businesses. PAT for FY25 was ₹210 crores, compared to ₹219 crores last year, primarily due to higher finance costs (up ₹10 crores) and increased depreciation (up ₹15 crores) from capacity expansion.
• Segmental Performance and Outlook:
  • Alloy Wheels: Revenue of ₹1,436.5 crores from 33 lakh units (up from 30 lakh units last year). Management is optimistic, expecting double-digit growth in this segment and a slight increase in margins this year, with a significant boost from European exports in FY27.
  • Tractors: Achieved annual sales volume exceeding 17 lakh units, the best in the segment. Expects single-digit growth this year.
  • Commercial Vehicles (CV): Experienced a 3.5% decline in FY25, which primarily contributed to the flat overall sales growth. However, management anticipates a strong recovery, with current month's sales expected to be the highest ever for the CV segment.
  • Exports: FY25 turnover was ₹561 crores. Despite challenges, the company targets ₹1,000 crores in exports in the next financial year (FY26), citing a competitive advantage over Vietnam and Thailand due to favorable tariff structures and new traction from European OEMs facing financial strain.
  • Knuckles Business: Generated ₹11 crores in revenue in FY25, operating at about 70% capacity utilization (from 2.5 lakh units expansion). The company aims to reach 100% utilization this year and plans to augment capacity, viewing it as an evolving and growing market in India.
• Future Outlook and Capex: SSWL forecasts at least 15% growth for FY26 and expects double-digit growth (15% to 25%) for the next three fiscals. EBITDA per wheel is projected to increase, with ₹270 being the new norm, potentially reaching ₹300+ by FY27 due to renegotiated legacy contracts and new domestic pass car steel wheel businesses. The company plans approximately ₹600 crores in capital expenditure over the next two years (FY26-FY27) for alloy wheel and knuckle capacity expansions.
• Debt Management: The company successfully reduced its long- and short-term debt by ₹193 crores despite undertaking capital expansion activities. Finance costs are expected to decrease going forward due to debt reduction and potential repo rate reductions.
• Market Share: The company's alloy wheel market share has grown significantly to 37-38% from approximately 24% three years ago. While passenger steel wheel market share has seen some transition due to the shift towards alloy wheels and program changes, the company expects it to increase with new Maruti programs. SSWL holds a pole position in the EV 2-wheeler business with over 80% market share.