Gabriel India hosted a conference call on Feb 9, 2024. In the conference call, the company was represented- by Manoj Kolhatkar, Managing Director and by Rishi Luharuka, Chief Financial Officer.

Key takeaways of the call

In Q3 FY24, passenger cars (PC) contributed 24% of total revenue, CVR 13%, two wheelers/ three wheelers 61% and trading 2%.

In terms of channel mix, OE contributed 86% of total revenue in Q3 FY24, replacement 12% and exports 2%.

In Aftermarket segment, passenger cars (PC) contributed 37% of total revenue during Dec 2023 quarter, CVR 10%, two wheelers/ three wheelers 41% and trading 12%.

In 2Ws & 3Ws main drivers of growth included initiatives to enhance market share with key customers like TVS , Bajaj and EV OEM, increased focus on developing new products in EV and premium category, and the notable acceptance of end products in the market.

Company is in final stages of delivering its 2Ws order to European customers.

Company recorded 40% YoY growth in EV-2W segment and 60% YoY growth in EV-3W segment in Q3 FY24.

Company reported its highest EV Sales in Uttar Pradesh in the month of Dec 2023.

In Q3 FY24, company’s share of business in 2W and 3W sales was 73% and 7% respectively.

In PV segment, growth was driven by UV/Van segment recording 34% YoY against market growth of 26%. Share of Utility Vehicle sales in company’s Passenger Vehicle business stands at 65%.

Management indicated that EV sales in passenger cars is improving month on month.

Going forward, company intends to develop more products for the core segment. In addition, it expects to benefit from introduction of new models by OEMs.

EBITDA margin improved during the quarter driven by focus on premium products.

Company is trying to improve its market share with key customers by developing new products.

Company has plans to focus on Latin American & African markets for Quantum growth in Export''s sales. Company is on track to expand its customer base in in overseas markets to improve export revenue.

In terms of export sales, company derives 32% of export revenue from Europe, Africa 8%, USA 7%, South America 26%, North America 1%, Asia 21% and Australia 5%.

Aftermarket contributed 37% YTD to export sales and OEM 63%.

In Aftermarket segment, Shox & Struts contributed 88% to total sales in Q3 FY24 and Allied 12%.

Capex incurred during Q3 FY24 was Rs 17.2 crore. Similarly, Capex incurred during 9M FY24 was Rs 50.02 crore.

Company Launched 269 SKU’s In 9M FY24.

In Q3 FY24, company generated cash flow from operations in tune of Rs 26.6 crore.