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Corporate Update

Gokaldas Exports Posts Robust Revenue Growth In Q1FY25

• By  Textile Excellence
• August 08, 2024

Gokaldas Exports Limited has posted robust revenue growth for the quarter ended June 30, 2024. The Company reported a consolidated revenue of Rs. 939.7 Crore for Q1FY25 compared to Rs. 522.2 Crore in the same quarter last year. On quarter to quarter basis, revenue grew 14.9 percent from Q4FY24 revenue of Rs 818 Crore. In the recently announced quarterly results, the company reported consolidated profit after tax of Rs 27.2 Crore compared to Rs 32.6 Crore in the previous quarter.

Commenting on the company’s performance, Sivaramakrishnan Ganapathi, Vice Chairman and Managing Director of Gokaldas Exports said, “We were able to sustain the revenue growth momentum during the quarter but missed on profitability front. The company witnessed several headwinds starting from a disruption of our production in a majority of our factories in April and May leading to delays in shipment incurring extra costs in overtime and airfreight, huge ramp up of employees in anticipation of volume growth in the second half of the year, slower ramp up of our new units, and continuing airfreight costs at Atraco. Some of these impacts will be offset in the quarters ahead.”

“We are making good progress towards integrating the operations of our newly acquired entities to secure better operating leverage. Our strategic investment in BTPL, a fabrics processing unit, allows us to derive utmost benefit through vertical integration into critical raw materials, adding an edge in terms of speed, quality, and cost”.

Recently, Gokaldas Exports has acquired two companies through a combination of debt and equity and raised equity capital of Rs 600 Crore through QIP in April 2024. The Company has a net cash of Rs 58 Crore as of June 30, 2024 and has robust vertically integrated operations with over 30+ production units in multiple geographic locations, strong customer base to support growth opportunities. It is aiming significant growth in the future.

We were able to sustain the revenue growth momentum during the quarter but missed on profitability front. The company witnessed several headwinds starting from a disruption of our production in a majority of our factories in April and May leading to delays in shipment incurring extra costs in overtime and airfreight, huge ramp up of employees in anticipation of volume growth in the second half of the year, slower ramp up of our new units, and continuing airfreight costs at Atraco. Some of these impacts will be offset in the quarters ahead.”