Gokaldas Exports (GOKEX) Q2 24/25 earnings summary

Executive summary

• Consolidated revenue/income grew 85% year-over-year in Q2FY25, with organic growth (excluding acquisitions) at 28% YoY, reflecting strong customer demand and export growth.

• Integration of acquired entities is progressing, with most headwinds now behind and future benefits expected from operating leverage.

• Strategic investment in a fabric processing unit enhances vertical integration, supporting quality and cost efficiency.

• New manufacturing unit in Madhya Pradesh is fully ramped up, with further expansion and incentives pending approval.

• Board approved unaudited standalone and consolidated results for the quarter and half year ended September 30, 2024.

Financial highlights

• Q2FY25 total income reached ₹942 Cr, up 85% YoY; export revenue rose 33% YoY; H1FY25 total income was ₹1,882 Cr, up 82% YoY.

• Adjusted EBITDA for Q2FY25 was ₹91 Cr (9.6% margin), up 63% YoY; H1FY25 adjusted EBITDA was ₹187 Cr (10% margin), up 52% YoY.

• Standalone revenue for H1 FY25: Rs. 119,629.32 lakhs, up from Rs. 101,137.70 lakhs YoY; standalone net profit for H1 FY25: Rs. 8,911.04 lakhs.

• Net cash from operating activities (consolidated) for H1 FY25: Rs. 6,748.76 lakhs.

• Standalone volume in Q2 was 8.1 million pieces; consolidated volume was 14.95 million at INR 580 realization.

Outlook and guidance

• Order book remains strong, with robust near-term prospects and favorable long-term outlook due to global sourcing shifts and supply-side instabilities in competitor countries.

• Like-for-like EBITDA margin expected to trend towards 12%; consolidated EBITDA margin expected to improve by 1.5% in the near term.

• Capacity utilization is at full levels, with incremental 5-7% growth expected in the next quarter.

• CapEx of INR 100 crores planned for the year, with 55 crores already incurred; new capacities to yield results next financial year.

• Management confident in recovery of overseas receivables and ongoing compliance with regulatory directives.