The Company raised equity capital of Rs 6 billion through Qualified Institutional Placement (QIP) in April 2024.
Gokaldas Exports declared its financial results for the quarter ended June 30, 2024. The Company reported a consolidated revenue of Rs 9.39 billion for the quarter compared to Rs 5.22 billion in the same quarter last year and a consolidated profit after tax of Rs 270.2 million compared to Rs 320.6 million in the previous year Q1 FY24.
Commenting on the company’s first quarter, Sivaramakrishnan Ganapathi, Vice Chairman and Managing Director of Gokaldas Exports said, “We were able to sustain the revenue growth momentum during the quarter but missed on profitability front. 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.
We are making good progress towards integrating the operations of our newly acquired entities to secure better operating leverage. 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 costâ€.
The Company raised equity capital of Rs 6 billion through Qualified Institutional Placement (QIP) in April 2024. After the acquisition of two companies through a combination of debt and equity, along with the fund raise, the Company has a net cash of Rs 580 million as of June 30, 2024. The Company has robust operations spanning multiple geographies leveraging trained people, a diversified and strong customer base supporting growth opportunities and preferential access to raw materials through investments in the vertical value chain. This will support the Company to target significant growth in the future.