Gokaldas Exports Witnesses Sharp Decline in Share Price

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VoM News Desk | October 31, 2023 | 02:31 PM IST | Breaking News | Follow on Google News

Gokaldas Exports Witnesses Sharp Decline in Share Price

Gokaldas Exports Witnesses Sharp Decline in Share Price

Gokaldas Exports saw its share price drop by nearly 8.56% to ₹784 in early Tuesday trading. This decline followed the release of the company’s Q2 FY24 financial results, which were weaker than expected. However, the stock has since recovered from its intraday low and is currently trading at ₹815.95 as of 11:15 AM.

Q2 FY24 Performance

In Q2 FY24, Gokaldas Exports reported a 40% YoY and a 27.27% QoQ decrease in consolidated net profit, with earnings reaching ₹24 crore. The company’s consolidated revenue from operations also declined, amounting to ₹509 crore in Q2 FY24, an 11.7% decrease compared to the same quarter last year.

Company Statement

Siva Ganapathi, Vice Chairman and Managing Director of Gokaldas Exports, commented on the Q2 performance. He attributed the weak numbers to lean demand from major brands with excess inventory. Ganapathi mentioned that the company had ramped up its labor force in preparation for the third quarter, resulting in increased costs. However, he expressed confidence in improved momentum in the second half of the year due to growing traction in customer orders. Ganapathi emphasized that the company is focused on enhancing operating parameters and is optimistic about the medium- to long-term prospects.

About Gokaldas Exports

Gokaldas Exports is one of India’s largest integrated apparel manufacturers with a manufacturing capacity of 36 million pieces annually. The company exports its products to prestigious fashion brands and retailers in over 50 countries.

Recent Developments

In August, Gokaldas Exports’ wholly-owned subsidiary, Gokaldas Exports FZCO, entered into an agreement to acquire Atraco Group, an apparel manufacturer with operations in Dubai since 1986. Atraco Group specializes in the production of casual wear, including shorts, pants, shirts, blouses, t-shirts, and dresses. The group’s turnover in the calendar year 2022 was AED 394 million.

Share Performance

So far this year, Gokaldas Exports shares have delivered a return of 123%. In the previous year, the stock generated a return of 12.66%, and two years ago, it recorded a substantial rally with a 262% return. In CY20, the stock rewarded shareholders with a 24% gain.

Disclaimer: The opinions and suggestions provided in this article are those of individual analysts and do not reflect the viewpoints of VoM News. We encourage investors to consult with certified experts before making any investment choices.

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