Gokaldas Exports zooms over 40% in two days post Q4 results

The stock hit a 52-week high of Rs 103 on BSE, zoomed 43% in past two trading sessions from Rs 72 on May 30.

Gokaldas Exports, the garments maker controlled by private equity giant Blackstone, has rallied 15% to Rs 99, extending its previous day’s rally on the BSE, after the company reported a standalone operating profit of Rs 39 crore for the quarter ended March 2016 (Q4FY16). It had posted operating loss of Rs 3 crore in the year ago quarter.

Net profit of the company increased by 17% year on year (YoY) at Rs 41 crore on back of 23% YoY rise in net sales at Rs 318 crore over the previous year quarter.

For FY16, the company posted 77% jump in its consolidated net profit at Rs 61 crore against Rs 35 crore in FY15.

“Order book for Q4FY16 was significantly better driven by penetration into new categories for some existing customers and also aided by unusually high spring summer demand,” Gokaldas Exports said in a release.

The company said it is working towards growing the top-line and improving profitability through various cost optimization initiatives, improvement in efficiency and customer-category portfolio realignment to improve margins.

The net debt of the company as of March 31, 2016 has also reduced by 44% YoY at Rs 135 crore.

The stock hit a 52-week high of Rs 103 on the BSE in intra-day trade and zoomed 43% in past two trading sessions from Rs 72 on May 30.

The counter has seen huge trading volumes with a combined 7.15 million shares changed hands till 12:58 AM against an average sub one million shares that were traded daily in past two weeks on the BSE and NSE.