08 August 2024, Mumbai
Gokaldas Exports recorded consolidated revenue of Rs 939.7 crore in Q1, FY, a significant increase from Rs 522.2 crore in the corresponding quarter last year. However, its consolidated profit after tax decreased to Rs27.2 crore from ₹32.6 crore in Q1 of the previous year.
SivaramakrishnanGanapathi, Vice Chairman and Managing Director, Gokaldas Exports, states, the company maintained revenue growth momentum. However, its profitability was impacted by several challenges. Production disruptions in most factories during April and May led to shipment delays, resulting in extra costs from overtime and airfreight. The company also experienced a slower-than-expected ramp-up of its new units and continued airfreight costs at Atraco. Although these issues affected profitability, Gokuldas Exports hopes to offset some of these impacts in the upcoming quarters."
Ganapathi further highlights, the company achieved progress in integrating newly acquired entities, which are expected to enhance operating leverage. Additionally, their strategic investment in BTPL, a fabric processing unit, will help optimise vertical integration, thereby improving speed, quality, and cost efficiency.
In April 2024, the company raised Rs600 crore in equity capital through a Qualified Institutional Placement (QIP). After acquiring two companies through a mix of debt and equity, along with the fundraising efforts, Gokaldas Exports now has a net cash position of Rs58 crore as of June 30, 2024. With operations spread across multiple geographies, a well-trained workforce, a diversified customer base, and preferential access to raw materials through vertical integration, the company is well-positioned to target substantial growth in the future.
Founded in 1979, Gokaldas Exports has grown into a leading one-stop solution for some of the world’s most recognised apparel brands and is one of India’s largest apparel manufacturers and exporters, with a global presence in over 50 countries.
