Gokaldas Exports net down 3.5%

Gokaldas Exports, the country's largest apparel exporter by revenue, has reported a 3.5 per cent dip in net profit to Rs 17.19 crore during the third quarter of 2007-08 compared with the corresponding quarter last financial year.

The company attributed this to the rising rupee against the US dollar.

However, in dollar terms, the company's bottom line grew by 18 per cent compared with the third quarter of 2006-07.

"The rupee has risen in excess of 12 per cent against the US dollar in the last one year. It is obvious that apparel exporters are witnessing dip in net profit. However, in dollar terms we have grown year-on-year as well as quarter-on-quarter," said Gokaldas Exports Executive Director (Finance) Rajendra J Hinduja.

The rupee strengthened by another 2.3 per cent this quarter. "Despite this appreciation, the company's hedging strategy and improved realisations have helped to tide over the forex impact on profits," he added.

This quarter has been a high income tax paying quarter, Rs 1.94 crore, the highest-ever for the company.

The topline grew by 13.7 per cent year-on-year to Rs 291.66 crore, which includes Rs 10 crore as other income. On a sequential basis, the company's net profit went up by 53 percent while the revenue increased by 15 per cent.

Hinduja said the business environment and the US economy are posing challenges, but there has been no impact on business so far.

"We continue to see good demand from our customers and our order book for Q4 is at a level of Rs 280 crore," he added.

He pointed out that the company is reducing dependence on dollar realisation. "Most of our European customers have changed to billing in Euro currency," he said.

Gokaldas aims to exceed Rs 50 crore domestic business by year end.