Gabriel India hosted a conference call on Feb 6, 2023. 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

Capex incurred during Q3 FY23 was Rs 23.2 crore. In 9M FY23, capex was Rs 69.7 crore.

In Q3 FY23, 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 83% of total revenue in Q3 FY23, replacement 13% and exports 4%.

In Aftermarket segment, passenger cars (PC) contributed 37% of total revenue during Dec 2022 quarter, CVR 9%, two wheelers/ three wheelers 43% and trading 12%.

In Q3 FY23, company's cash Flow from operations was outflow of Rs 4.2 crore compared to Rs 34.5 crore inflow in Q3 FY22.

During 9M FY23, company's Gross Debt was Rs 11.5 crore.

As per SIAM data, the 2W sales grew by 1% YoY and 3W grew by 13% YoY respectively in Q3 FY23. 2W segment continues to struggle due to inflationary pressures.

Maharashtra's EV sales accounted for 13% of the overall share of EVs registered for the quarter.

Gabriel India dispatched its first shipment to Hero Spur recently.

As per SIAM data, the sale of Passenger Vehicles grew by 21% YoY in Q3 FY23 driven by new launches within key customers and SUV segment gaining traction.

As per SIAM data, the overall commercial vehicles segment registered a growth of 12% in Q3 FY23.

Currently, share of Utility Vehicle sales in Gabriel Passenger Vehicle business is 65% and Share of Business in total Utility Vehicle Sales is 33%.

In 9M FY23, 2W & 3W segment contributed 64% to total sales, PV segment 22%, CV segment 12% and others 2%.

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.

EV market share in suspension for Gabriel is 60% plus. Going forward company expects to hold on to its leadership position.

In 9M FY23, export Composition stood at 69% OEM and 31% aftermarket. Company has implemented four IT projects successfully and two are in pipeline. Target to become 100% IT enabled in next 2 years.

Company Launched 172 SKU's Dec 22-23. More than 1327 SKUs launched in last 5 years. Management Continuous focus on expanding Product Portfolio.

Company has launched 18 New Product lines successfully in recent years & four NPL are in pipeline.

Company is reducing 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.