I am pleased to inform you that the team at Gokaldas Exports proved sceptics wrong in2018-19.
There were a number of reasons that made this an exceptional year for the Company.
The Company reported a substantial swing in net profit from a loss of B31.0 cr. to aprofit of B25.6 cr. during the year. The Company generated an EBITDA of B77.2 cr. that isthree times that of 2017-18. What is most important is that the Company's performance wasconsistent across all quarters and there was a steady improvement through the year. Thisgives us the confidence to state that the organisation has been transformed and theperformance improvement is sustainable.
The Company needed access to precious capital for sustainable growth. However the pasttrack record of weak general business sentiment resulted in tightening of bank creditbecause of which the Company was faced with two stark choices: shrink or innovate. Themanagement team resolved to make the most of the situation by strengthening terms oftrade reducing costs and reducing the working capital cycle. The Company raised capitalthrough a QIP to the tune of almost ~B70 cr. in a weak market and deployed it wisely inupgrading its business infrastructure and working capital. The Company also reduced itsworking capital cycle from 121 to 102 days freeing resources for growth. The Companystrengthened its operational performance across all factories and business units. Theimprovement in key performance metrics is heartening to see and will ensure that theCompany continues its journey of operational excellence.
The team at Gokaldas Exports systematically developed trustworthy relationships withall stakeholders by consistently delivering superior performance and results. This isevident from the improved business
flows from its key customers. Adding seven new marquee customers also indicates thatthe market sees Gokaldas Exports as a transformed entity and is now willing to restore itsfaith in the Company. Lastly the organisation is far stronger now with the induction ofnew talent. This makes it more resilient and endows it with the capability to take upbigger challenges.
We are more confident than ever that the Company is strongly positioned. The Company'smargins are on the rise performance metrics are better working capital management isstronger and customer confidence is higher. We believe that during the year under reviewwe laid the foundation for a reinvigorated Gokaldas Exports that is now poised to unlockgrowth create long-term value and secure its future.
On behalf of the Board of Directors I thank our customers for their support. I wouldalso like to acknowledge the counsel of the Board that helped steer the Company throughthe year. I wish to thank our leadership team and employees led by Managing DirectorSivaramakrishnan Ganapathi for their commitment to create a world-class company.
|Mr. Richard B. Saldanha |
|Chairman and Non-executive Independent |