Gokaldas Exports, a textile manufacturer and exporter, has recently received investment from Catamaran Ventures LLP, led by NR Narayana Murthy. The company foresees enhanced financial performance in the upcoming Q3 and Q4. This is expected as brands buying 25% less than the previous year due to surplus inventory are anticipated to recover. A senior executive of the company shared this information with businessline.
In the preceding month, Catamaran Ventures, owned by Narayana Murthy, acquired a 1.12 per cent equity interest in an apparel manufacturing company.
During the initial quarter of fiscal year 2023-24 (Q1 FY24), Gokaldas Exports encountered a 17.4% year-on-year decrease in their consolidated net profit, amounting to ₹32.5 crore. This fall can be linked to reduced exports to the United States and European countries. The first quarter witnessed a 15.7 per cent decline year-on-year in consolidated revenue, amounting to ₹514 crore.
We are observing significant progress due to our production for Spring 24 in Q3, leading to a resurgence in brand engagement and purchasing activity. Indeed, we are following both sequential and annual expansion. According to Sivaramakrishnan Ganapathi, MD of Gokaldas Exports, there was a slight setback in the initial two quarters. Still, there is now a noticeable improvement in performance during the third and fourth quarters.
The organisation manages 24 manufacturing facilities, with an annual business turnover of ₹2,200 crore. The individual elucidated that the growth strategy of the company centres on both organic and inorganic expansion, focusing on the evaluation of acquisition transactions that involve new clients, product lines, and geographies.
The recent acquisition of Atraco has facilitated duty-free access to the United States through Kenyan companies, creating avenues for cross-selling opportunities.
