Gabriel India (505714) Q2 24/25 earnings summary

Executive summary

• New Managing Director Atul Jaggi introduced, bringing extensive experience in quality and manufacturing excellence.

• Unaudited standalone and consolidated financial results for Q2 and H1 FY25 were approved and released, with limited review reports from statutory auditors.

• Board declared an interim dividend of INR 1.75 per share for Q2 FY25, with a record date of October 30, 2024.

• Achieved revenue of Rs. 9,240.05 million in Q2 FY25, up 6.9% year-on-year, and H1 FY25 revenue of Rs. 17,882.39 million, up 7.1% year-on-year.

• Net cash position remains strong at Rs. 3,293 million as of September 2024.

Financial highlights

• Standalone revenue for Q2 FY25 was Rs. 9,240.05 million, up from Rs. 8,644.48 million in Q2 FY24; H1 FY25 revenue was Rs. 17,882.39 million, up from Rs. 16,702.16 million year-over-year.

• EBITDA margin for Q2 FY25 was 8.7%, with EBITDA at Rs. 804 million, a 6.8% increase year-over-year.

• PAT for Q2 FY25 was Rs. 527 million (5.7% margin), up 12.1% year-over-year; H1 FY25 PAT was Rs. 1,038.56 million.

• Sunroof business margins reached 18% in recent quarters, expected to normalize to 12%-14%.

• Export business saw significant improvement, especially in Latin America and Europe.

Outlook and guidance

• Optimistic outlook for H2 FY25, especially with festive season demand and new launches in commercial vehicles.

• Focus on expanding global presence through exports and leveraging relationships with global OEMs.

• Strategic emphasis on technology, R&D, and sustainability to drive future growth.

• Vision to be among the top 5 shock absorber manufacturers globally by 2025.

• The company is evaluating the impact of the rejected joint venture application with Inalfa Roof Systems B.V.