Gokaldas Exports Limited, a leading apparel manufacturer and exporter, has reported a 16.5% decline in its profit after tax (PAT) for Q1 FY25, totaling ₹27.2 crore, down from ₹32.6 crore in the same quarter of the previous year. The decrease in PAT was attributed to production disruptions in April and May, which led to shipment delays and increased costs for overtime and airfreight.
Sivaramakrishnan Ganapathi, Vice Chairman and Managing Director of Gokaldas Exports, acknowledged the challenges, stating, “We were able to sustain revenue growth during the quarter but fell short on profitability.” He explained that the company had expanded its workforce and ramped up production in anticipation of higher volumes, but the process took longer than expected, adding to costs.
Despite the profitability setback, Gokaldas Exports saw a significant boost in its consolidated revenue, which surged 79.9% to ₹939.7 crore from ₹522.2 crore in the previous year’s corresponding quarter. The company’s EBITDA also rose by 21.8%, reaching ₹82.6 crore compared to ₹67.8 crore.
In April 2024, the company raised ₹600 crore through a Qualified Institutional Placement (QIP). Following the acquisition of two companies using a mix of debt and equity, Gokaldas Exports reported a net cash position of ₹58 crore as of June 30, 2024.
