Gabriel India (505714) Q2 24/25 earnings summary

Executive summary

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

• Achieved revenue of Rs. 9,240 Mn in Q2 FY25, up 6.9% year-over-year and sequentially from Q1 FY25.

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

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

• Unaudited standalone and consolidated financial results for the quarter and half year ended September 30, 2024, were approved and released.

Financial highlights

• Q2 FY25 operating revenue rose 6.9% year-over-year to INR 924 crores, driven by two-wheeler and EV sales.

• EBITDA margin stable at 8.7% for Q2 FY25; EBITDA was Rs. 804 Mn, up 6.8% year-over-year.

• PAT for Q2 FY25 was Rs. 527 Mn (5.7% margin), up 12.1% year-over-year.

• Sunroof business margins reached 18% in recent quarters, but management expects sustainable range of 12%-14%.

• H1 FY25 revenue reached Rs. 17,882 Mn, up 7.1% year-over-year.

Outlook and guidance

• Optimistic outlook for H2 FY25, especially with festive season demand.

• Commercial vehicle segment expects improved performance, supported by new launches and rural demand.

• Management targets double-digit standalone EBITDA margin by FY26, with a clear roadmap via the CORE 90 program.

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

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