Gokaldas Exports Limited, an apparel manufacturer and exporter, has announced its quarterly earnings. The company saw a dip in its profit after tax (PAT) of 16.5 per cent to ₹27.2 crore in Q1 FY25, compared to ₹32.6 crore in the corresponding quarter last year. Production disruptions in factories during April and May negatively impacted profits, causing shipment delays that resulted in increased overtime and airfreight costs.
“We were able to sustain the revenue growth momentum during the quarter, but we missed on the profitability front,” said Sivaramakrishnan Ganapathi, Vice Chairman and Managing Director of Gokuldas Exports.
The company expanded its workforce in anticipation of volume growth; however, ramping production units took longer than expected, adding costs, according to Sivaramakrishnan.
The cloth manufacturer reported a 79.9 per cent increase in consolidated revenue, reaching ₹939.7 crore compared to ₹522.2 crore in the same quarter last year. EBITDA increased by 21.8 per cent, reaching ₹82.6 crore, up from ₹67.8 crore.
The company raised Rs 600 crore in equity capital through a Qualified Institutional Placement (QIP) in April 2024. After acquiring two companies through a combination of debt and equity, along with the funds raised, the company reported a net cash position of ₹58 crore as of June 30, 2024.