Gabriel India (505714) Q4 02/03 earnings summary

Executive summary

• FY02/03 sales rose 22% YoY to Rs. 3,753.5 million; PBT increased 174% to Rs. 203.4 million and PAT increased 196% to Rs. 117.3 million.

• Ride Control Products drove growth through higher motorcycle and commercial-vehicle demand, capacity additions, and expanded OEM business; Engine Bearings remained broadly flat.

Financial highlights

• Sales were Rs. 3,753.53 million vs Rs. 3,080.76 million; profit before interest and depreciation was Rs. 469.8 million vs Rs. 370.6 million.

• PBT was Rs. 203.35 million vs Rs. 74.17 million; PAT was Rs. 117.26 million vs Rs. 39.62 million, after Rs. 86.1 million of current and deferred tax provisions.

• Basic EPS rose to Rs. 16.44 from Rs. 5.55; proposed dividend increased to Rs. 5 per share from Rs. 3.

Outlook and guidance

• Capacity additions and product development were positioned to meet growing demand from current and future vehicle models; planned development spans Ride Control Products and Bearings for domestic and export markets.

• SOQI, Japan shock absorber exports began during the year and were expected to grow substantially; efforts to secure additional export markets would continue.

• Engine Bearings was set to intensify domestic and overseas market efforts; management planned further debt reduction.