Gokaldas Exports, a prominent player in India’s apparel manufacturing sector, witnessed a sharp downturn in its shares, dropping by 8.56% to ₹784 apiece in early Tuesday’s trade. This dip followed the release of disappointing Q2 FY24 results. Although the stock showed a slight recovery from its intraday low, it currently stands at ₹816.65 apiece, reflecting a 4.75% decrease as of 1:42 PM.
In the second quarter of the fiscal year, the company reported a substantial 40% year-on-year (YoY) and a 27.27% quarter-on-quarter (QoQ) decline in its consolidated net profit, amounting to ₹24 crore. Concurrently, the consolidated revenue from operations experienced a downturn, totaling ₹509 crore in Q2FY24 compared to ₹576.3 crore during the same period last year, marking an 11.7% decrease.
Siva Ganapathi, Vice Chairman, and Managing Director of Gokaldas Exports, shed light on the challenges faced during Q2, citing increased costs due to the ramp-up in labor force to prepare for the upcoming quarter. Despite the setback, Ganapathi expressed optimism, stating, “We are expecting improved momentum in the second half of the year as we are seeing growing traction in customer orders. We will stay focused on improving operating parameters and are confident of the medium- to long-term prospects of the company.”
Gokaldas Exports, boasting a manufacturing capacity of 36 million pieces per year, serves as one of India’s largest integrated apparel manufacturers. The company exports its products to prestigious fashion brands and retailers in over 50 countries. However, lean demand from major brands, compounded by excess inventory challenges, contributed to the Q2 performance dip.
