Gabriel India (505714) Q4 03/04 earnings summary

Executive summary

• FY03/04 sales rose 12% to Rs 4,210.0 million; PBT increased 29% to Rs 262.4 million and PAT rose 42% to Rs 166.8 million.

• Ride Control growth and a stronger OEM customer base offset lower Engine Bearings turnover and labor disruption at Parwanoo.

Financial highlights

• Domestic sales were Rs 4,076.83 million versus Rs 3,632.27 million; export sales were Rs 133.17 million versus Rs 121.26 million.

• Profit before interest and depreciation was Rs 492.4 million versus Rs 472.1 million; interest fell to Rs 84.2 million from Rs 131.7 million.

• PAT was Rs 166.83 million versus Rs 117.26 million; basic and diluted EPS were both Rs 23.23 versus Rs 16.44 and Rs 16.31, respectively.

Outlook and guidance

• New Chakan orders for Chevrolet Tavera, Toyota’s new project, Maruti Alto and Wagon R were expected to begin supplying in FY04/05; Noida Omni supplies were also planned for FY04/05.

• Capacity enhancement for Noida motorcycle shock absorbers and front forks was expected to be completed by July 2004; Engine Bearings units planned a stronger domestic and export push.

• R&D plans target new shock absorbers, struts, cartridges, bearings, modules and systems for domestic and export markets.