Apparel manufacturer, Gokaldas Exports reported a rise in consolidated net profit by 19 percent in the quarter that ended on 30 September, to ₹28.2 crore, from ₹23.7 crore in Q2FY24.

The majority of the growth during the quarter was contributed by Gokaldas Exports excluding Atraco & Matrix, according to Sivaramakrishnan Ganapathi, Vice Chairman and Managing Director of Gokaldas Exports. He added that seasonality limited the growth contribution from Atraco and Matrix.

The total income stood at ₹941.8 crore, reflecting an 85 percent increase from ₹509 crore. The EBITDA margin for Q2 was 8.7 percent.

On the consolidated profitability front, muted volumes in the acquired entities, along with increased air freight costs at Gokaldas Exports and higher employee expenses in anticipation of future volume growth, impacted profitability during the quarter.

However, the company expects a stronger volume pickup in both acquired entities in the upcoming quarters. This, coupled with the sustained stable performance of Gokaldas Exports, is expected to drive improved profitability going forward, noted Ganapathi.

Gokaldas Exports, established in 1979, exports to over 50 countries worldwide. With the acquisition of Atraco and Matrix, the company now operates more than 30 production units and has an annual capacity to produce nearly 87 million garments.

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