Gokdaldas Exports shares hit all-time high on strong business outlook

Gokdaldas Exports' shares hit an all-time high of Rs 505.65, rallying 9 per cent on the BSE in Wednesday s intra-day trade on the back of a strong business outlook.

The stock of the company, which is engaged in garments apparel business, has surpassed its previous high of Rs 488 touched on May 5, 2022. In the past one month, it has outperformed the market by 30 per cent, as opposed to a 4 per cent decline in the S&P BSE Sensex.

For January-March quarters, FY 22 had reported the best quarterly performance due to a growing order book and ability to weather supply chain disruptions.

The company's consolidated profit after tax PAT was more than doubled to Rs 61 crore in Q 4 FY 22 as opposed to Rs 16 crore in the corresponding quarter last year. The consolidated earnings before interest, taxes, depreciation and amortization ebitda margin improved 170 bps QoQ and 365 bps YoY to 13.1 per cent on account of positive operating leverage.

Revenue grew 58 per cent year-on-year YoY to Rs 588 crore, which was the highest quarterly revenue against Rs 373 crore in Q 4 FY 21. Export revenue increased by 58.3 per cent YoY. The company said that deep engagement with key customers and the augmentation of capacity resulted in strong revenue growth.

The growth was a result of robust capacity expansion and a rapid ramp-up of production. A growing operating profit was contributed to by increased volume, better product mix, and improved operational efficiency. It added that the company's ability to weather production and supply chain disruptions was reflected in the year's performance.

For the entire financial year 2021 -- 22 FY 22 consolidated profit after tax PAT increased by 342 per cent YoY at Rs 117 crore, while operational revenue grew 47.9 per cent YoY at Rs 1,790 crore. The Ebitda margin increased 270 bps to 12 per cent from 9.3 per cent in FY 21.

The management said it remains optimistic about the order book for FY 23. The company continues to see growth opportunities in FY 23 despite the uncertainty from a combination of headwinds and tailwinds.

There are opportunities for global sourcing away from China, supplier consolidation to efficient and well capitalised players, supply side instabilities in countries like China, Vietnam and Sri Lanka, the announcement of Production Linked Incentive PLI and signing of Free Trade Agreements with key FTAs with key FTAs and the possibility of new growth in the UK market. The management said that the shift in consumer preferences after the pandemic has resulted in a shift towards wovens, as people seek more formal clothes.