Apparel manufacturer and exporter Gokaldas Exports Ltd reported a 6 per cent year-on-year (y-o-y) decline in consolidated profit at ₹44.3 crore in Q4 FY24 compared with ₹47.2 crore in Q4 of the previous year. The consolidated total income for Q4 FY24 came to ₹818.0 crore against ₹530.1 crore in Q4 FY23, recording a 54 per cent jump.
For FY24, the company’s consolidated profit after tax fell 24.3 per cent y-o-y to ₹131.0 crore from ₹173.0 crore in FY23. Additionally, the consolidated revenue grew 7.2 per cent to ₹2,409.0 crore in FY24, from ₹2,247.2 crore in FY23.
Earnings before interest, tax, depreciation, and amortisation (EBITDA) for quarter under review stood at ₹90 crore, with an EBITDA margin of 11 per cent. The shares closed at ₹840.75, down 2.26 per cent at the end of trading hours.
Sivaramakrishnan Ganapathi, Vice-Chairman and Managing Director of Gokaldas Exports, said, “Our performance on a like-to-like basis, i.e. financial results excluding the recently acquired entities, reflects a strong performance. We overcame pricing pressure, one-time acquisition cost, increased statutory minimum wages and one-time start-up cost at our new unit to deliver a strong EBITDA.”
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“The acquisition of the two companies and capacity addition aligns with our aim to integrate, diversify and grow, while focusing on improving margins. We are confident in productivity improvements resulting from geographic diversification, access to new customers, integrating existing customers, leveraging duty arbitrage, and strategic positioning,” he added.
Established in 1979, Gokaldas Exports’ current turnover is $290 million and it exports to more than 50 countries. Following the acquisition of Atraco and Matrix through a combination of debt and equity, the company now has over 30 production units and more than 30,000 advanced machines that can produce about 87 million garments annually.
After acquisition, Gokaldas reported a net debt of ₹336 crore, as of March 31, 2024. Subsequently, the company raised equity capital of ₹600 crores through Qualified Institutional Placement (QIP) in April 2024, which has helped the company to turn net cash positive.
(Inputs by bl intern Vidushi Nautiyal)