- 16 Aug 2024
- ICICI Securities
Gabriel India Ltd reports steady performance in Q1FY25
News: Gabriel India Limited has announced its financial results for Q1FY25. The company reported a 7% year-on-year (YoY) increase in net sales to ₹864 crore. EBITDA for the quarter came in at ₹78 crore with corresponding margins at 9%, flat QoQ. Profit after tax (PAT) surged by 20% YoY to ₹51 crore. The company also informed exchanges that its JV partner in the Sunroof segment i.e. Inalfa Roof Systems Group B.V, failed to secure government approval for investments into India, however remains committed to its business with Gabriel through currently executed Technical Collaboration and Alliance Agreement.
Views: Gabriel topline performance for the quarter was short of expectations amidst ~20% growth in 2-W industry and company driving ~63% sales from this segment. On the margins front flat sequential performance is satisfactory amidst its guidance of double-digit margins in the medium term. With a longer-term perspective, we remain positive on Gabriel amidst healthy B/S, EV agnostic product profile, foray into sunroof components and presence with prominent new age auto OEMs in the EV space. Company remains committed to be amongst the top 5 shock absorber manufactures globally.
Impact: Neutral