Gabriel India's Q4 net profit up 61.5%

Gabriel India Ltd., a leader in Indian auto component industry, has posted 61.5 per cent jump in net profit at Rs 20.9 crore for the quarter ended March 31, 2016 as against Rs 12.3 crore in the corresponding quarter of the previous year.

The company’s revenue has marginally grown by 5.12 per cent at Rs 366.6 crore in Q4FY16. Its operating profit (EBITDA) has grown by 14.52 per cent at Rs 326.1 crore along with operating profit margin expanding by 74 bps for the current quarter, i.e. at 8.91 per cent. Other Income has grown by 106.2 per cent to Rs 1.536 crore in Q4FY16 as against Rs 0.75 crore in the corresponding period of the previous year.

For the entire period of FY16, it has reported 25.35 per cent growth in consolidated net profit of Rs 75.24 crore, and its revenue has been reported at Rs 1,438.23 crore. Its consolidated operating profit (EBITDA) has grown by 9.23 per cent at Rs 127.6 crore along with operating profit margin expanding by 78 bps for the current year, at 8.87 per cent.

It is one of the leading manufacturers of ride control products viz. shock absorbers, front forks and struts across automotive segments. It commands a market share of 25 per cent in both two-wheelers and passenger vehicles and is the market leader in commercial vehicles segment with a 75 per cent market share.

It is an almost debt-free company. It is strategising towards simplification, and automation efficiency is likely to improve. The company has created an SBU (strategic business unit) for each of its segments in order to focus on product mix, exports and the after-market expansion.

On the valuation front, it is currently trading at 17.25 times, price to earnings (P/E) ratio per share of Rs 5.24 as on March 31, 2016. Currently stock is trading up by Rs 26.85 or 0.45 per cent at Rs 107.88 per share.

Today, stock price closed lower by Rs 0.40 or 0.44 per cent at Rs 90.40 per share.