Garments exporter Gokaldas Exports Ltd turned to profit in the second quarter of FY14 even as the company reported highest revenues in four years during the period. Gokaldas, owned by private equity major The Blackstone Group, reported a 20 per cent increase in standalone revenues to Rs 290 crore.
"The demand scenario has been stable for the company as well as the garments’ sector though overall global economy continues to be sluggish. Our investment in relationship building efforts with the customers focused on quality and timeliness of deliveries has given an impetus to the performance of the company. This thrust will continue in future," Gokaldas said in a statement.
The company reported a net profit of Rs 1.8 crore in Q2FY14 compared with a loss of Rs 34 crore in the corresponding quarter last year. EBIDTA (earnings before interest, taxes, depreciation, and amortisation) for the quarter stood at Rs 17.4 crore, accounting for a favourable swing of Rs 36.3 crore compared with a loss of Rs 18.9 crore in the corresponding quarter the previous year.
These results include a one-time other income of Rs 10.4 crore excluding which EBIDTA for the quarter stood at Rs 7 crore at 2.4% of revenue.
The scrip of Gokaldas closed at Rs 49, up by 3.16 per cent on Thursday giving the company a market capitalisation of Rs 168.56 crore.
"We continue to see positive traction in the demand scenario in the second half of the year too. At the same time, high inflationary condition in the country is a key concern which would lead to higher wages as well as operational expenses affecting our competitiveness in the global markets," the company said.
Blackstone holds 68.27 per cent in the company while previous owner, the Hinduja family, has around 20 per cent stake. Blackstone had invested in the company way back in 2007 and put in more than $150 million in the public-listed textiles firm in one of the rare control deals in India. It has seen the value of its investments shrink 90 per cent.
(Edited by Joby Puthuparampil Johnson)