Gabriel India (505714) Q4 00/01 earnings summary

Executive summary

• FY2000-01 sales rose 10% to ₹268.34 crore despite weak automotive demand; PAT increased 71% to ₹4.56 crore.

• Cost reduction, improved OEM penetration, marketing initiatives and working-capital management supported growth; pricing and margins remained under severe pressure.

Financial highlights

• Sales ₹268.34 crore vs ₹244.28 crore; profit before tax ₹5.03 crore vs ₹3.06 crore; PAT ₹4.56 crore vs ₹2.67 crore.

• Profit before interest and depreciation ₹34.97 crore vs ₹33.72 crore; net interest ₹19.07 crore vs ₹20.79 crore; depreciation ₹10.87 crore vs ₹9.87 crore.

• Proposed dividend ₹2.50/share vs ₹2.00; total proposed payout ₹1.78 crore vs ₹1.42 crore.

• Exports were ₹10.96 crore vs ₹11.42 crore; foreign exchange earnings ₹10.96 crore and outgoings ₹11.17 crore.

Outlook and guidance

• Kayaba-design McPherson strut supplies from Gurgaon expected to start in Q1 FY2001-02; gas-charged shock absorber supplies for Maruti Suzuki expected in H2.

• Focus areas include product-mix rationalisation, supply-chain and working-capital management, TPM, Six Sigma and defect-free manufacturing.

• Development priorities include shock absorbers, struts, cartridges, bearings, modules and systems for domestic and export markets.