Gokaldas Exports, a leading apparel exporter headquartered in Bengaluru, has announced a robust performance for the second quarter ended September 30, 2024. The company reported a significant 18.77% increase in consolidated profit to Rs 28.16 crore, compared to Rs 23.71 crore in the corresponding quarter of the previous year.
A major contributor to this growth was the strong performance of the company’s export business. Total income surged by 85% to Rs 941.8 crore during the quarter, up from Rs 509.0 crore in the same period last year. EBITDA also witnessed a substantial increase of 48% to Rs 82.4 crore, with an EBITDA margin of 8.7%.
Strategic Acquisitions and Future Outlook
Gokaldas Exports’ Vice Chairman, Siva Ganapathi, attributed the strong performance to the sustained growth momentum across the business. He highlighted the significant contribution of the core Gokaldas Exports business, excluding the recently acquired entities, Atraco and Matrix, which typically experience a seasonal slowdown during the quarter.
While the acquired entities impacted profitability due to muted volumes and increased costs, Ganapathi expressed optimism about the future. He anticipates a volume pick-up in these businesses in the coming quarters, coupled with the continued stable performance of the core operations.
Financial Strategy and Corporate Guarantees
The company has effectively utilised approximately 93% of the Rs 600 crore raised through a qualified institutional placement in April. The funds have been allocated towards debt repayment and potential inorganic growth opportunities.
Additionally, Gokaldas Exports has extended a corporate guarantee of up to Rs 200 crore to BRFL Textiles Private Limited to facilitate working capital and term loan facilities.
As Gokaldas Exports continues to strengthen its position in the global apparel market, the company’s strong financial performance and strategic initiatives position it for sustained growth and future success.
