Gokaldas Exports (GOKEX) Q2 24/25 earnings summary

Executive summary

• Consolidated revenue/income grew 85% year-over-year in Q2FY25, with organic growth at 28% and export revenue up 33%, reflecting strong customer demand and contributions from acquired entities.

• Integration of acquired entities (Atraco, Matrix) is progressing, with operational headwinds largely behind and future benefits expected from operating leverage.

• New manufacturing capacity in Madhya Pradesh is fully ramped up and commissioned, with further expansion planned in India and Africa.

• Strategic investment in fabric processing (BTL/BRFL) enhances vertical integration, quality, and operational efficiency.

• Significant investments and acquisitions completed, including ATRACO Group and Matrix Design & Industries Private Limited.

Financial highlights

• Q2FY25 total income reached ₹942 Cr, up 85% YoY; H1FY25 total income was ₹1,882 Cr, up 82% YoY; export revenue rose 33% YoY.

• Adjusted EBITDA for Q2FY25 was ₹91 Cr (9.6% margin), up 63% YoY; H1FY25 adjusted EBITDA was ₹187 Cr (10% margin), up 52% YoY.

• Standalone volume in Q2 was 8.1 million pieces; consolidated volume was 14.95 million at INR 580 realization.

• Net profit for H1 FY25: Rs. 5,534.07 lakhs; standalone net profit: Rs. 8,911.04 lakhs.

• Cash from operations in H1 was INR 171.5 crores; net cash from operating activities (consolidated) for H1 FY25: Rs. 6,748.76 lakhs.

Outlook and guidance

• Management targets consolidated EBITDA margin above 10% in the near term and 12% steady-state, with standalone margins expected to rise by 1% annually.

• Revenue growth guidance is at least 15% annually, with 1-2% realization growth targeted.

• ROC is expected to reach 20% over the next two years as acquired entities mature; current consolidated ROC is 15-16%.

• Capacity expansion in Bhopal, South India, and Africa to drive incremental revenue and margin improvement.

• Awaiting approval for government incentives for new manufacturing unit in Madhya Pradesh.