Gabriel India hosted a conference call on Nov 11, 2022. In the conference call, the company was represented by Manoj Kolhatkar, Managing Director.

Key takeaways of the call

In Q2 FY23, passenger cars (PC) contributed 22% of total revenue, CVR 11%, two wheelers/ three wheelers 65% and trading 2%.

In terms of channel mix, OE contributed 85% of total revenue in Q2 FY23, replacement 12% and exports 3%.

In Aftermarket segment, passenger cars (PC) contributed 35% of total revenue during sept 2022 quarter, CVR 8%, two wheelers/ three wheelers 44% and trading 13%.

CV volumes have started improving from Q2 FY21 driven by government infrastructure push.

Inflation is started to cool off, as commodity prices are coming down now.

In Q2 FY23, two wheelers/ three wheelers Growth was primarily driven by efforts in terms of improving market share with key customers, higher efforts in terms of developing new products and on account of strong acceptance of end products in the market.

EV-2W segment grew by 85% in FY22 from FY21.

In Q2 FY23, passenger cars segment observed growth with new launches within key customers and SUV segment is gaining traction.

In Q2 FY23, CV segment witnessed moderate growth coming back slowly reflecting in better production volumes by OEMs.

After market have increased from 12.1% is Q4 FY22 to 12.2% is Q2 FY23.

Company launched 109 SKU's in Q2 FY23. More than 1264 SKUs launched in last 5 years.

Company also launched 18 New Product lines in recent years & 4 NPL are in pipeline.

Going forward, management intends to (1) develop more products for the core segment, (2) Increase sales through national channels and (3) Focus on Latin American & African markets for Quantum growth in Export's sales.

In H1 FY23, export Composition stood at 70% OEM and 30% aftermarket.

Cash Flow from operations stood at Rs 25.5 crore as compared to Rs 4.8 crore inflow in Q1 FY23.

As of sept 2022, Capacity utilization was around 65-70%.

Company incurred capex of Rs 25.3 crore in Q2 FY23 and Rs 46.6 crore in H1 FY23.

Going forward, company intends to reduce energy consumption per unit of shock absorber through reduction in manufacturing losses.

Company Invested in solar rooftops across manufacturing plants with a capacity of 1.54 MW.

As of sept 2022, company sourced 18% of power from renewable sources compared to 0% in FY14.