Gokaldas Exports hits the roof after turnaround results

Gokaldas Exports hit an upper circuit limit of 10% at Rs 60.90 at 12:52 IST on BSE after the company reported a net profit of Rs 6.35 crore in Q4 March 2014 compared with a net loss of Rs 10.98 crore in Q4 March 2013.

The result was announced on Saturday, 10 May 2014.

Meanwhile, the BSE Sensex was up 416.79 points, or 1.81%, to 23,411.02.

On BSE, so far 700 shares were traded in the counter, compared with an average volume of 2,485 shares in the past one quarter.

The stock opened with an upward gap, surging by the maximum 10% daily circuit and remained locked at the 10% level at Rs 60.90 so far in the day. The stock hit a 52-week high of Rs 75.50 on 31 December 2013. The stock hit a 52-week low of Rs 22.75 on 20 August 2013.

The stock had underperformed the market over the past one month till 9 May 2014, sliding 6.66% compared with 1.29% rise in the Sensex. The scrip had also underperformed the market in past one quarter, sliding 6.50% as against Sensex's 12.85% rise.

The small-cap company has an equity capital of Rs 17.19 crore. Face value per share is Rs 5.

Gokaldas Exports' total income from operations (net) rose 17.15% to Rs 322.03 crore in Q4 March 2014 over Q4 March 2013.

Gokaldas Export said growth in Q4 March 2014 has been broad-based with both exports as well as domestic businesses showing revenue expansion. This has been driven by strong order flow in the second half of the financial year ended March 2014 (FY 2014). Demand levels have been steady both from our existing set of customers as well as new customers. Euro zone is showing signs of improvement which should be positive for the industry as a whole.

The company reported a net loss of Rs 7.21 crore in Q4 March 2014 compared with a net loss of Rs 111.88 crore in Q4 March 2013. Total income from operations (net) rose 14.68% to Rs 1111.85 crore in Q4 March 2014 over Q4 March 2013.

On a consolidated basis, Gokaldas reported a net loss of Rs 6.70 crore in Q4 March 2014 compared with a net loss of Rs 109.44 crore in Q4 March 2013. Total income from operations (net) rose 15.31% to Rs 1131.18 crore in Q4 March 2014 over Q4 March 2013.

Going forward, while the demand pattern is likely to be similar, adjusted for seasonality, there are headwinds on account of inflationary conditions and sharp increase in wage rates. Management is taking adequate steps to counter the impact of such cost increases. However, the key risk is the impact of this cost increase on competitiveness of the Indian garments' industry vis-vis other countries, the company said in a statement.

Gokaldas Exports manufactures and exports men's readymade garments, ladies readymade garments, kids readymade garments, etc.

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