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%, reflecting 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.

• Despite strong revenue growth, the quarter faced headwinds: production disruptions, manpower shortages, delayed shipments, and non-recurring air freight costs impacted profitability.

• Strong order books and favorable long-term prospects due to global sourcing shifts and supplier consolidation.

• Approved unaudited standalone and consolidated financial results for Q1 FY25 and re-appointed Mr. Prabhat Kumar Singh as Whole Time Director for three years starting November 12, 2024.

Financial highlights

• Q1 FY25 consolidated revenue: INR 940 crores (₹93,213.17 lakhs), up 80% year-over-year; standalone revenue up 11.2%.

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

• Net cash position as of June 30, 2024: INR 58 crores, after raising ₹600 Cr through QIP in April 2024.

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

• Standalone business (excluding acquisitions) operating at about 25% ROCE.

Outlook and guidance

• Capacity utilization expected to be at or near full across all units for the remainder of FY25.

• Margins anticipated to return to double digits from H2 FY25, with further improvement in FY26.

• Revenue run rate projected to exceed INR 1,000 crores per quarter in H2 FY25, with full-year revenue expected around INR 3,900–4,000 crores.

• Additional growth drivers for FY26 include debottlenecking, productivity gains, and incremental expansions in Ranchi, Mombasa, and Bhopal Unit 2.

• 83% of QIP proceeds have been utilized as per the placement document, supporting ongoing business initiatives.