Gabriel India -
Q3 FY 24 concall and results highlights -
Sales - 814 vs 711 cr, up 14 pc
EBITDA - 70 vs 51 cr ( margins @ 8.8 vs 7.2 pc - significant improvement )
PAT - 43 vs 30 cr
Cash on balance sheet @ 213 cr
Capex in Q3 @ 17 cr. For 9M FY 24, Capex @ 50 cr
Segment wise sales break up -
2W/3W - 61 pc ( enjoy 32 pc mkt share in domestic mkts )
Passenger Cars - 24 pc ( enjoy a mkt share of 24 pc in domestic mkts )
Commercial vehicles - 13 pc ( enjoy a mkt share of 89 pc in domestic mkts )
Trading - 2 pc
Channel wise sales break up -
OEM sales - 86 pc
After market sales - 12 pc
Exports - 2 pc
Company’s yearly export sales @ around 95 cr. Aim to ramp up exports going forward. Expecting to win some good orders for supplies to 4W and 2W products in the exports mkt in near future
Some popular car models using Gabriel’s shock absorbers - Jimmy, Grand Vitara, Brezza, Thar, Bolero, XUV 700, Hyryder, Kushq, Taigun
Company is a leader in Electric 2W segment. Popular models that they r supplying to include - TVS I-Cube, Ola - S1 pro, Ather 450x, Ampere Magnus. EV 2-wheeler mkts grew by 34 pc in Q3. Overall 2W sales grew by 19 pc
Future pipeline for passenger vehicles -
VW - 1 product
Tata Motors - 4 products
Mahindra - 3 products
Stellantis - 2 products
Company has won the Bajaj Platina business in Q3. Were not supplying to this model, previously
Have won orders for Ola - Motorcycle, New EV products of Suzuki, TVS
Have won orders for Swift - as alternate supplier. This is a very high volume product. A second source supplier generally gets 30 pc of the total volume
Supply of locomotive dampeners to railways is a small but fast growing business
Company entered the Sun-Roof market in May 23 by collaborating with Inalfa Roof Systems ( a Dutch company ). Its a JV with Gabriel India holding at 49 pc. Company has started supply of sun roofs for new Creta in Dec. Full scale production started in Jan 24. Inalfa holds 25 global mkt share in Sun-Roof mkt
Have got orders for SunRoofs for a new KIA model to be launched in 2025
Two global OEMs have recently visited company’s facilities in Dec-Jan. Expecting break-through with both the companies within FY 25
EBITDA margins in SunRoofs are likely to be in Double digits. Even at a company level, company intends to be making double digit EBITDA margins by FY 26 - this can potentially lead to a big bump up in profitability
Company is developing electronic suspensions. The avg selling price of these suspensions is 3X of a normal suspension. However, the ramp up here is expected to be slow
Disc: added recently, tracking position, not SEBI registered, biased
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