Gokaldas Exports sees revenue go up but profits go down in FY25 Q1

August 09, 2024

Category: GARMENTS

Country: India

Region: Asia

By Isabelle Crossley
8th August, 2024
Reading time: 2 minutes

Apparel manufacturing business Gokaldas Exports saw its consolidated revenue increase significantly to total Rs 939.7 crore in the first quarter of the 2025 financial year but profits after tax were down at Rs 27.2 crore during the quarter.

Gokaldas Exports’ consolidated revenue had totalled Rs 522.2 crore in the first quarter of the 2024 financial year and its profits after tax had totalled Rs 32.6 crore, the business announced in a press release. In April 2024, the business raised Rs 600 crore in equity capital through Qualified Institutional Placement and acquired two companies.

“We were able to sustain the revenue growth momentum during the quarter but missed on profitability front,” said Gokaldas Exports’ vice chairman and managing director Sivaramakrishnan Ganapathi in a press release. “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.”

As of June 30, 2024, Gokaldas Exports reported a net cash of Rs 58 crore. The business is targeting significant growth in the future and aims to leverage its pan-India network to fuel this.

“We are making good progress towards integrating the operations of our newly acquired entities to secure better operating leverage,” said Ganapathi. “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.”