 "Gokaldas Exports zooms 16%, hits over 3-year high on strong Q4 results")
Shares of Gokaldas Exports hit an over three-year high of Rs 122.5 apiece after they rallied 16 per cent in Monday's intra-day trade on the BSE after the company's profit after tax (PAT) jumped three-fold at Rs 16 crore for quarter ended March 2021 (Q4FY21) on the back of strong operational performance. It had posted PAT of Rs 6 crore in Q4FY20. The stock of the textiles company was trading at its highest level since January 2018.
In Q4FY21, the company's revenue from operations grew 3.3 per cent to Rs 369.90 crore from Rs 357.90 crore in the corresponding quarter of the previous fiscal. Earnings before interest, taxes, depreciation, and amortization (EBITDA) margin also improved 190 basis points (bps) year on year at 10.2 per cent from 8.3 per cent in the year-ago quarter.
"The sizable, around 2 per cent, growth in operating margin YoY is not only a result of revenue growth but also of cost reduction initiatives taken during the year. Further, a one-time expected credit loss provision of Rs 4.1 crore has been made. Adjusted for this, the Ebitda margin would be 11.3 per cent. Major apparel consuming markets have started returning to normalcy, resulting in a healthy order book for the company," the company said in a statement. Exports grew by 10 per cent YoY.
The management further said the outlook for the industry is positive. "With vaccination drive gaining momentum in all the countries that we export to, we anticipate a good demand recovery in the forthcoming year," it added.
The company has a strong order book for the coming quarters based on consistent execution and strong credibility in the eyes of its customers. With most international markets gradually opening up during the year after successfully completing a threshold level of vaccination, the management anticipates demand to burgeon. The company has the confidence and resilience to leverage the opportunity provided by the market and take appropriate steps in line with Government directives to manage and grow the business, it said.
At 12:59 pm, the stock was up 11 per cent at Rs 117.45 on the BSE, as compared to a 1.29 per cent rise in the S&P BSE Sensex. Trading volumes on the counter more-than-doubled with a combined 3.13 million equity shares having changed hands on the NSE and BSE till the time of writing of this report.
In Q4FY21, the company's revenue from operations grew 3.3 per cent to Rs 369.90 crore from Rs 357.90 crore in the corresponding quarter of the previous fiscal. Earnings before interest, taxes, depreciation, and amortization (EBITDA) margin also improved 190 basis points (bps) year on year at 10.2 per cent from 8.3 per cent in the year-ago quarter.
"The sizable, around 2 per cent, growth in operating margin YoY is not only a result of revenue growth but also of cost reduction initiatives taken during the year. Further, a one-time expected credit loss provision of Rs 4.1 crore has been made. Adjusted for this, the Ebitda margin would be 11.3 per cent. Major apparel consuming markets have started returning to normalcy, resulting in a healthy order book for the company," the company said in a statement. Exports grew by 10 per cent YoY.
The management further said the outlook for the industry is positive. "With vaccination drive gaining momentum in all the countries that we export to, we anticipate a good demand recovery in the forthcoming year," it added.
The company has a strong order book for the coming quarters based on consistent execution and strong credibility in the eyes of its customers. With most international markets gradually opening up during the year after successfully completing a threshold level of vaccination, the management anticipates demand to burgeon. The company has the confidence and resilience to leverage the opportunity provided by the market and take appropriate steps in line with Government directives to manage and grow the business, it said.
At 12:59 pm, the stock was up 11 per cent at Rs 117.45 on the BSE, as compared to a 1.29 per cent rise in the S&P BSE Sensex. Trading volumes on the counter more-than-doubled with a combined 3.13 million equity shares having changed hands on the NSE and BSE till the time of writing of this report.
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