Gabriel India (505714) Q4 99/00 earnings summary

Executive summary

• FY ended Mar. 31, 2000 sales rose 18% YoY to Rs. 244.28 crore; net profit was Rs. 2.67 crore versus a Rs. 1.89 crore loss in FY99.

• Improved operating efficiencies, working-capital management and cost reduction supported the return to profit, despite intense pricing and margin pressure.

Financial highlights

• Sales were Rs. 244.28 crore versus Rs. 207.62 crore; profit before tax was Rs. 3.06 crore versus a Rs. 1.88 crore loss; profit after tax was Rs. 2.67 crore versus a Rs. 1.90 crore loss.

• Profit before interest and depreciation was Rs. 33.72 crore; net interest was Rs. 20.79 crore and depreciation was Rs. 9.87 crore.

• Interim dividend of Rs. 2 per share was paid; directors recommended no additional dividend.

Outlook and guidance

• Kayaba Strut project was nearing completion, with commercial supplies expected to begin in October 2000.

• Engine Bearings planned concerted efforts in domestic and overseas markets to improve performance; product development was to continue across shock absorbers, struts, cartridges, bearings, modules and systems.

• Planned registered-office relocation to Kuruli, Pune, effective Oct. 1, 2000, aimed to reduce administration costs and improve coordination and operational efficiency.