Q3FY2023 REVIEW

Gabriel India Limited reported net revenue of ₹710.99 crores for the quarter ended December 31, 2022, compared to ₹606.14 crores for December 30, 2021. Profit After Tax was ₹29.12 crores for the quarter ended December 31, 2022, compared to ₹25.69 crores during the corresponding quarter of the previous year, respectively.

STOCK DATA

Gabriel India Limited - OVERVIEW

• Gabriel India Ltd is the first indigenous company to create a damper for the Vande Bharat Coach and the Rajdhani/ Shatabdi Coach (LHB).

• In its sites in Dewas, Khandsa, Hosur, Parwanoo, Sanand, Nashik, and Pune, GIL produces ride-control equipment.

• With a presence in more than 25 countries and 664 distributors, the firm produces more than 500 models of ride control equipment.

SHAREHOLDING PATTERN (%)

Gabriel India Limited - BENCHMARK COMPARISON

BUSINESS

• Being the main business of the ANAND Group and a well-known brand name in the production of ride control equipment, Gabriel India Ltd was established in 1961.

• The Business evolved from a single-product firm to the most trusted brand in the ride control goods market. For almost six decades in India, the company has dependably provided quality. Gabriel India is also regarded as the 'Pioneer of Ride Control and Comfort.

• Following are the business segment of the company:

  • 2&3 wheelers:

    • Having extensive expertise in the 2 & 3-Wheeler category, the Company has established itself as a strong contender in the 2W/3W EV area as well. Most premium manufacturers rely on us for front forks and rear shock absorbers.

    • Its top three customers are TVS Motors, Yamaha, and Bajaj Auto.

  • Passenger Cars:

    • Gabriel India is one of the market leaders in the passenger automobiles area, offering 300 types of highly precise ride control products and solutions.

    • Its top three players are Mararuti Suzuki, M&M, Volkswagen

  • Commercial Vehicle & Railways:

    • Gabriel India is the main maker of shock absorbers for commercial vehicles, with an 85% market share (CV). It supplies Linke Hofmaan Busch (LHB) coaches to the prestigious Indian Railways.

    • The top three players are Tata Motors, Ashok Leyland, and M&M.

  • Aftermarket:

    • The aftermarket caters to two and three-wheelers, passenger vehicles, and commercial vehicles. Gabriel India has built a significant brand equity and leadership position over the last 60 years, with a market share of more than 40%.

• As per segment wise revenue from 2W&3W was 65%, from Passenger cars was 22%, Commercial Vehicles, and Railways was 11%, and from Trading was 2%, compared to 67%, 21%, 10%, and 2%.

• Geographically, revenue from India was 95% and from outside was 5%, compared to 96% and 4% in FY 2021.

SWOT ANALYSIS

STRENGTH

• The company is net debt free

• Diversified product portfolio

• Experienced Management.

• Company with Zero Promoter pledge.

WEAKNESS

• Susceptibility to pricing pressure from OEMs and peers.

• FIIs have decreased their shareholding.

OPPORTUNITIES

• Favourable government policies.

• Adoption of new technology.

• Large-scale digitalization.

THREAT

• Increasing pressure on costs and quality.

• Product complexity and ever-changing market dynamics.

AUTO COMPONENTS INDUSTRY ANALYSIS

• Based on domestic demand, notably from the passenger car sector, India's auto components industry saw a rise of 34.8% to ₹2.65 lakh crore in the first half of 2022–23.

• Exports of components increased by 8.6% over the period to USD 10.1 billion (₹79.03 lakh crore), while imports increased by 17.2% to USD 10.1 billion (₹79.8 lakh crore).

• The percentage of shipments to North America increased by 12% to 33% of the total. The proportions of Europe and Asia increased by 4% and 11%, respectively, to 30% and 26%, respectively.

• By 2026, it is expected that the $13.3 billion in exports from the Indian auto component business would have increased to $80 billion. The USA, Germany, the United Kingdom, Thailand, and Italy are the main export markets.

• India's car component industry had its highest-ever trade surplus in the fiscal year 2021–2022, at $700 million.

• The aftermarket sector, which includes tyres, batteries, and brake parts, is expected to rise to $32 billion by 2026 from $9.8 billion in FY20.

• By 2025, the whole Indian auto components market, which presently contributes 2.3% of India's GDP, is expected to overtake the United States as the third-largest market worldwide.

• The Production-Linked Incentive (PLI) Program in the Automotive and Auto Components Sectors was launched by the Union Cabinet, which is presided over by Prime Minister Shri Narendra Modi. The PLI programme (with a $3.5 billion budget) for the automotive industry suggests financial incentives of up to 18% to encourage local production of high-tech automotive goods and draw capital to the industry's value chain.

• On April 1, 2022, for a period of five years, incentives are applicable for specific sales of goods made in India. The programme came to an end on January 9, 2022. Under this PLI plan, a total of 95 candidates have been accepted: 20 under Champion OEM and 75 under Component champion.

Gabriel India Limited - FINANCIAL OVERVIEW

QUARTERLY SUMMARY

Gabriel India Limited - PROFIT AND LOSS STATEMENT (₹ in Millions)