Gokaldas Exports (GOKEX) Q1 24/25 earnings summary

Executive summary

• Consolidated revenue for Q1 FY25 grew 80% year-over-year to INR 940 crores, with organic revenue (excluding acquisitions) up 11.2% year-over-year, indicating demand recovery and market share gains.

• Full results of newly acquired entities included for the first time, contributing significantly to growth; integration progressing ahead of schedule.

• Order book is full across all divisions for upcoming quarters, with capacity utilization near or at full levels and favorable long-term prospects due to global sourcing shifts.

• Production disruptions in April and May led to shipment delays and extra costs, but integration and margin improvement initiatives are underway.

• Approved unaudited standalone and consolidated financial results for the quarter ended June 30, 2024, and re-appointed Mr. Prabhat Kumar Singh as Whole Time Director for three years starting November 12, 2024.

Financial highlights

• Total income for Q1 FY25 was ₹939.7 Cr, up 79.9% YoY and 14.9% sequentially; revenue from operations was ₹932.1 Cr.

• Adjusted EBITDA was ₹96.6 Cr, up 42.5% YoY; adjusted EBITDA margin at 10.3%.

• Net cash position of INR 58 crore as of June 30, 2024, after acquisitions, investments, and QIP fundraising.

• Q1 impacted by non-recurring costs: INR 12.6 crore EBITDA hit from manpower shortages, overtime, and air freight; Atraco incurred INR 8.6 crore non-recurring air freight cost.

• Consolidated net profit for Q1 FY25 was ₹2,802.22 lakhs, compared to ₹3,255.23 lakhs in Q1 FY24.

Outlook and guidance

• Expectation of strong improvement in H2 FY25 and into FY26, with margins returning to double digits as integration benefits materialize.

• Full capacity utilization anticipated for all acquired and expanded units for the year ahead.

• New manufacturing unit in Madhya Pradesh to reach optimal levels by Q3 FY25; Tamil Nadu fabric processing unit to ramp up by Q4 FY25.

• Revenue run-rate expected to top INR 1,000 crore per quarter in H2, with full-year revenue in the INR 3,900–4,000 crore range.