Q3 2025 Gabriel India Ltd Earnings Call Transcript
Key Points
- Gabriel India Ltd (BOM:505714) reported a 14% year-on-year growth in standalone operating revenue for Q3 FY25, reaching INR 924 crores, driven by higher volumes and improved sales in the two-wheeler and passenger vehicle segments.
- The recent acquisition of assets from Mother Marelli Auto Suspension Part Private Limited (MMAS) is expected to enhance Gabriel India's position in the suspension market, expand its product portfolio, and add new product lines such as gas springs.
- The company is entering into a technology assistance agreement with Marelli Suspension Systems to advance its suspension offerings, which could lead to improved product capabilities.
- Gabriel India Ltd's sunroof business reported strong demand, driven by rising volumes and customer preference, with plans to double capacity by the end of 2025 to meet growing demand.
- The company has seen a robust 16% growth in the SUV segment, driven by strong demand and aggressive launches, which positively impacts its business.
- The commercial vehicle segment experienced muted growth of 2.2% due to declining retail volumes and delayed government fund releases for infrastructure projects.
- The two-wheeler segment saw a month-on-month decline in December, attributed to reduced direct subsidies per vehicle, despite annualized growth.
- The acquisition of MMAS, which has been marginally loss-making, may initially stress Gabriel India's margins, although synergies and operational leverage are expected to improve profitability over time.
- The sunroof business experienced a dip in margins due to one-off costs, and competition in the sunroof market is expected to increase, potentially impacting future margins.
- Gabriel India Ltd's working capital cycle has increased to 26 days from sub-20 days, primarily due to inventory buildup related to the holiday season in China, which may affect cash flow management.
Ladies and gentlemen, good morning and welcome to the Gabriel India Limited Q3 FY25 in conference call.
This conference call may contain forward-looking statements about the company which are based on the beliefs, opinions and expectations of the company. As on date of this call, these statements are not a guarantee of future performance and involve risk and uncertainties that are difficult to predict.
(Operator Instructions)
I now hand the conference over to Mr. Atul Jaggi, managing Director of Gabriel Inter Limited. Please go ahead, sir.
Yeah, thank you so much. Good morning, everyone and very warm welcome to all the participants who are there on the call with me today. We have Mr. Rishi, our CFO and our strategic growth adviser, our IR relations advisor.
We have uploaded our results and the presentation for the quarter ended December 31 on the Stock exchange and the company website, I hope each one of you had a chance to go through the same.
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