Gokaldas Exports Results: Latest Quarterly Results & Analysis

Textiles company Gokaldas Exports announced Q2FY25 results

• Registered a robust topline growth of 85% and 19% growth in profits on YoY basis in Q2FY25.
• Consolidated total income of Rs 941.8 crore compared to Rs 509.0 crore in the Q2FY24.
• Consolidated profit after tax of Rs 28.2 crore compared to Rs 23.7 crore in the Q2FY24.
• EBITDA: Rs 82.4 crore compared to Rs 82.6 crore during Q2FY24.
• EBITDA Margin: 8.7% for Q2FY25.

Sivaramakrishnan Ganapathi, Vice Chairman and Managing Director of Gokaldas Exports, said: “We reported healthy growth in total income both in the quarter and half year indicating a sustained growth momentum. The majority of the growth during the quarter was contributed by Gokaldas Exports excluding Atraco & Matrix, as it is a seasonally lean period for both the acquired entities. On consolidated profitability front, muted volumes in the acquired entities, coupled with air freight cost in Gokaldas Exports and employee cost build up in anticipation of future volumes growth impacted the profitability in the quarter. We expect better volume pick up in both the acquired entities in upcoming quarters with sustained stable performance of the company going forward.”

Textiles company Gokaldas Exports announced Q1FY25 results:

• The Company reported a consolidated revenue of Rs 939.7 crore for the quarter compared to Rs 522.2 crore in the same quarter last year.
• Consolidated profit after tax of Rs 27.2 crore compared to Rs 32.6 crore in the previous year Q1FY24.

Commenting on the company's first quarter, 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".

Textiles company Gokaldas Exports announced Q4FY24 & FY24 results:

Q4FY24 Financial Highlights:

• The Company reported a consolidated revenue of Rs 818.0 crore for the quarter compared to Rs 530.1 crore in the same quarter last year
• Consolidated profit after tax of Rs 44.3 crore compared to Rs 47.2 crore in the previous year Q4FY23.

FY24 Financial Highlights:

• The Company reported a consolidated revenue of Rs 2,409 crore for FY24 
• Consolidated profit after tax of Rs 131 crore compared to Rs 173 crore in the previous year FY23.

Commenting on the company’s fourth quarter, 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 startup cost at our new unit to deliver a strong EBITDA. The acquisition of the two companies and capacity addition aligns with our aim to integrate, diversify, and grow, while focusing on improving margins.

We firmly believe that the strategic intent behind the recent acquisitions will provide a solid foundation for margin growth. Both Atraco and Matrix have distinct advantages that complements well to the existing business. We are confident in productivity improvements resulting from geographic diversification, access to new customers, integrating existing customers, leveraging duty arbitrage, and strategic positioning.”

Textiles company Gokaldas Exports announced Q2FY24 & H1FY24 results:

Financial Performance:
1. Gokaldas Exports reported consolidated revenue of Rs 509.0 crore for Q2FY24, showing a decline of 11.7% YoY.
2. Profit before tax for Q2FY24 stood at Rs 29.3 crore, compared to Rs 49.0 crore in Q2FY23, marking a decline of 40.1%.
3. The EBITDA margin for Q2FY24 was 11.0%, a decrease of 151 bps compared to Q2FY23.
4. The company's total income for H1FY24 was Rs 1,031.2 crore, representing a YoY decline of 13.3%.
5. H1FY24 profit before tax was Rs 72.5 crore, a decrease of 27.4% compared to H1FY23.

Commenting on the company's second-quarter performance, Siva Ganapathi, Vice Chairman and Managing Director of Gokaldas Exports said, "Our performance reflects lean demand from major brands, given that they were carrying excess inventory. We ramped up our labour force in Q2 in preparation for the third quarter, resulting in increased cost. We are expecting improved momentum in the second half of the year as we are seeing growing traction in customer orders. We will stay focused on improving operating parameters and are confident of the medium to long-term prospects of the company."

Textiles company Gokaldas Exports announced Q1FY24 results:

• Total Income of Rs 522.2 crore in Q1FY24 compared to Rs 612.7 crore in Q1FY23, down 14.8% YoY
• EBITDA of Rs 67.8 crore in Q1FY24 compared to Rs 743 crore in Q1FY23, down 8.8% YoY
• EBITDA Margin of 13.0% in Q1FY24 compared to Rs 12.1% in Q1FY23, up 85 bps YoY
• Profit before tax of Rs 43.2 crore in Q1FY24 compared to Rs 50.8 crore in Q1FY23, down 15.0% YoY
• Profit after tax of Rs 32.6 crore in Q1FY24 compared to Rs 39.4 crore in Q1FY23, down 17.4% YoY

Commenting on the company’s Q1FY24 performance, Siva Ganapathi, Vice Chairman and Managing Director, Gokaldas Exports said, “Our performance endorses the belief in our ability to sustain continued operating performance gains in a sluggish macro-economic environment. While we continue to take measures focusing on customer relationships and service excellence, we are optimistic about revival of the business in H2 and are bullish on the long-term prospects of the company.”

Textiles company Gokaldas Exports announced Q4FY23 & FY23 results:

• Reported consolidated net profit of Rs 173.0 crore, up by 47.7% compared to Rs 117.1 crore for FY22
• Reported consolidated revenues of Rs 2,247.2 crore for the year, up by 24.8% compared to Rs 1,801.0 crore for FY22
• EBITDA of Rs 295.8 crore is after considering ESOP charges of Rs 5.1 crore in Q4FY23 and Rs 23.0 crore for FY23 & excluding the exceptional income of Rs 6.05 crore in FY23
• The company is pleased to announce that the Board of Directors has recommended a final dividend of Re 1/- per equity share (i.e., 20% of the face value of Rs 5 per equity share) for FY23, subject to the approval of the shareholders at the ensuing Annual General Meeting of the company.

Commenting on the company’s fourth quarter performance, Siva Ganapathi, Vice Chairman and Managing Director, Gokaldas Exports, said, “Our performance is a testament to our dedicated team and unwavering commitment to excellence which have propelled us to new heights, delivering outstanding results in a challenging market environment globally. The government's emphasis on boosting exports through budget allocation and trade agreements will play a crucial role in driving the industry forward.”

Textiles company Gokaldas Exports announced Q2FY23 results:

• Profit before tax (excluding an exceptional income of Rs 6.05 crore from sale of building on leasehold land) was Rs 49.0 crore compared to Rs.28.6 crore in Q2FY22 and Rs 50.8 crore in the previous quarter, Q1 FY23. Starting the current financial year, the company has taken ESOP charge of Rs 6 crore in each quarter, excluding which the profit before tax was Rs 55.0 crore.
• Reported net profit (excluding an exceptional income of Rs 6.05 crore) of Rs 39.8 crores in the current quarter compared to Rs 28.6 crore in Q2 FY22 and generated an EBITDA of Rs 71.9 crore compared to Rs 53.9 crore in Q2 FY22 and Rs 74.3 crore in Q1 FY23.
• The EBITDA margin of the current quarter was 12.5%, up by 0.4% over the previous year and the previous quarter
• Incurred CapEx of Rs 51 crore during the first half of the year.
• Net cash surplus (i.e., cash and cash equivalents less gross debt) was Rs 69 crore as of September 30, 2022 vs. Rs 119 crore as of March 31, 2022.

Commenting on the company's performance, Mr. Siva Ganapathi, Managing Director, said, "we are pleased with our revenue and profit growth in Q2, despite it being seasonally weak quarter and encountering challenging global macro-economic environment."

Textiles company Gokaldas Exports declares Q3FY22 result:

• Gokaldas Exports Ltd reported 398% increase in its profit after tax at Rs. 30.11 Crores for the third quarter of FY22, ended on December 31, 2021, over Rs 6.05 Crores recorded for the corresponding period of FY21. The company also recorded revenue growth of 95% for the quarter ended December 31, 2021, at Rs. 524.06 Crores over Rs. 268.07 Crores recorded for the same period of FY21.
• In Q3FY22, the company generated an EBITDA of Rs. 62.77 Crores, compared to Rs. 24.09 Crores in Q3FY21 and Rs. 53.93 Crores in Q2FY22. EBITDA margin improved by 3% over the previous corresponding quarter of the last financial year.
• The Company had, earlier in this quarter infused equity capital of Rs. 300 Crores, through QIP in October 2021. This was used to reduce borrowings. The Company has reduced its net debt to Rs. (71.3) Crores as compared to Rs. 166.2 Crores as of 31% March 2021.
• The company continued its focus on service delivery excellence while augmenting its capacity and optimizing resources for better productivity. During the last nine months, the company has incurred capital expenditure of Rs. 42 Crores towards capacity expansion and modernization of its business infrastructure.

Key Highlights of Q2 FY 2021:

• Total income of Rs. 446 Crores vs. Rs. 344.89 Crores in Q2 FY21, posting YoY growth of 29.31%.
• EBITDA of Rs. 53.93 Crores vs. Rs. 33.11 Crores in the Q2 FY21.
• EBITDA margin increased to 12.1% from 9.6% in the Q2 FY21.
• Net debt increased by Rs. 50.28 Crores from 31st March 2021 on account of increased volume.