Gokaldas Exports clocks Rs. 1,030-cr. revenue

Gokaldas Exports Ltd. reported for the year ended March 31, 2012, a consolidated revenue of Rs. 1,030 crores with an EBIDTA of Rs. 12 crores before exchange difference gain / loss and one-time charges as against a loss of Rs. 29.3 crores in the previous year. This represents a Rs. 41-crore swing to profitability at EBITDA level, clearly showing the company’s turnaround which has been achieved through sustained efforts on operational profitability management.

After weathering the economic slowdown globally, Gokaldas ended the year with total revenues down 10 per cent at Rs. 1,030 crores, as against Rs. 1,146 crores in the previous year. The company achieved this by gaining greater share of business of key customers and also by adding nine new customers to the list.

The company has also been able to reduce costs by 13 per cent from Rs. 1,249 crores to Rs. 1,081 crores, including a reduction in raw material costs by 19 per cent. Net borrowings have come down from Rs. 264 crores as of April 2011 to Rs. 190 crores as of March 2012, a cut of 28 per cent achieved through improvement in profitability and better working capital management. This has also helped reduce interest costs by 27 per cent from Rs. 36.3 crores to Rs. 26.5 crores, notwithstanding rising interest rates for most part of the year.

PBT has been impacted due to a one-time charge of Rs. 46.6 crores, on account of the revised estimate of carrying value of old inventory in Q4 FY12. This resulted in a PBT of Rs. 131 crores for FY 12, as compared to PBT of Rs. 93 crores last fiscal. However, these charges are non-recurring in nature.

Mr. Gautam Chakravarti, Chief Executive Officer, Gokaldas Exports Ltd., said: “The company has now turned the corner and is now poised for profitable growth. Our focus on strengthening existing customer relationships, expanding to superior product portfolio and newer product categories, apart from gaining significant new customers, has started showing results for the company. Our cash focus has helped in reducing net borrowings through the year, and this had a positive impact on the interest outgo, resulting in strong EBITDA performance. Going forward our efforts for strong topline growth will continue, and we believe that we can drive more productivity, leading to better profitability.”

For the fourth quarter of 2011-12, the company clocked total revenue of Rs. 285 crores, representing a growth of 32 per cent over the third quarter and a decline of five per cent over the corresponding quarter of the previous year. For this quarter, the company clocked an EBIDTA of Rs. 13.5 crores against a loss of Rs. 7.2 crores for the corresponding quarter of last fiscal.

Added Mr. Gautam Chakravarti: “The full impact of revenue enhancement plus cost and operational effectiveness will be visible in FY13. We are continuing to aggressively focus on business development and new customer acquisitions to solidify customer base and grow business volumes. All this, coupled with our healthy growth from our current set of customers, despite weakness in Europe, will place Gokaldas on the path to sustained profitable growth”.

Gokaldas Exports continues to be a major player in the readymade garment industry across the globe. A well-established Indian manufacturer and exporter, it successfully meets the demand of global readymade garment markets.

Incorporated in 1979 and based in Bangalore, the facilities, technology and standards of performance of Gokaldas Exports meet international paradigms.