Gokaldas Exports Q4 FY25 results: net profit up 19.4% to ₹52.86 crore, revenue up 25.0%

How did Gokaldas Exports perform in Q4 FY25?

Gokaldas Exports reported consolidated revenue of ₹1,015 crore in Q4 FY25, up 25.0% from ₹812.42 crore in Q4 FY24 and 2.8% from ₹987.77 crore in Q3 FY25. EBITDA was ₹122.54 crore, compared with ₹84.47 crore and ₹103.91 crore respectively, while margin expanded to 12.1% from 10.4% and 10.5%.

Profit before tax rose to ₹79.05 crore from ₹42.94 crore a year earlier and ₹67.32 crore in the previous quarter. Net profit increased to ₹52.86 crore from ₹44.28 crore and ₹50.34 crore, respectively, while basic EPS was ₹7.40 compared with ₹7.23 and ₹7.04.

On a standalone basis, revenue was ₹655.18 crore, up 12.4%, and profit before tax was ₹52.8 crore against ₹58.5 crore. The board approved audited standalone and consolidated results for the quarter and year ended March 31, 2025.

What changed in Gokaldas Exports' costs and profit?

Total expenses increased to ₹955.81 crore from ₹775.04 crore in Q4 FY24. Cost of materials fell by ₹20.91 crore and other expenses declined by ₹13.22 crore, while employee cost rose by ₹73.36 crore, depreciation by ₹14.08 crore and finance costs by ₹1.84 crore.

Other income rose by ₹13.97 crore to ₹19.52 crore from ₹5.55 crore, while there was no exceptional item. Tax was ₹26.19 crore against a credit of ₹1.35 crore in Q4 FY24, a difference of ₹27.54 crore. The filings do not state a specific reason for the year-on-year movement in profit.

Against Q3 FY25, total expenses rose by ₹22.35 crore to ₹955.81 crore. Employee cost fell by ₹18.35 crore, cost of materials by ₹6.89 crore and other expenses by ₹19.13 crore; depreciation rose by ₹11.09 crore, finance costs by ₹2.32 crore and tax by ₹9.21 crore. Other income increased by ₹6.51 crore, and there was no exceptional item.

How did Gokaldas Exports do in FY25 as a whole?

For FY25, consolidated revenue rose to ₹3,864.24 crore from ₹2,378.88 crore in FY24, an increase of ₹1,485.36 crore or 62.4%. Total income increased by ₹1,508.19 crore or 62.6% to ₹3,917.18 crore.

Profit before tax rose by ₹59.08 crore or 37.2% to ₹218.07 crore. Net profit increased by ₹27.57 crore or 21.1% to ₹158.54 crore, while EPS increased by ₹0.81 to ₹22.36 from ₹21.55.

What do the balance sheet and cash flow show?

At March 31, 2025, total assets were ₹3,537.17 crore, compared with ₹3,086.44 crore at September 30, 2024, and total equity was ₹2,080.68 crore against ₹1,948.13 crore. Borrowings were ₹643.33 crore versus ₹401.64 crore, while cash rose to ₹164.75 crore from ₹55.48 crore.

Inventories were ₹681.94 crore against ₹635.94 crore, trade receivables ₹428.79 crore against ₹239.07 crore and trade payables ₹238.26 crore against ₹175.86 crore. For FY25, operating cash flow was ₹57.2 crore, compared with negative ₹177.06 crore in FY24; investing cash flow was ₹420.71 crore against negative ₹537.42 crore, and financing cash flow was ₹473.48 crore against ₹753.23 crore.

How has Gokaldas Exports done over the last 8 quarters?

Revenue reached its highest level of the eight-quarter series at ₹1,015.34 crore in Q4 FY25, while net profit also peaked at ₹52.86 crore and EBITDA margin at 12.1%. The lowest revenue in the series was ₹500.25 crore in Q2 FY24, while the lowest net profit was ₹23.71 crore in that quarter and the lowest EBITDA margin was 7.5% in Q2 FY25.

Revenue rose year on year in each of the last six quarters, while profit rose year on year in each of the last three quarters. The latest quarter extended the revenue progression and lifted profit and margin from Q3 FY25, when revenue was ₹987.77 crore, net profit ₹50.34 crore and EBITDA margin 10.5%.

What else did the company announce?

The board approved the audited standalone and consolidated financial results for the quarter and year ended March 31, 2025. The statutory auditors issued an unmodified opinion on both sets of results. The board also adopted the GEL Employee Stock Option Plan 2025, subject to shareholder approval, covering up to 20,00,000 options exercisable into 20,00,000 equity shares.

The board appointed Nagendra D. Rao and Associates LLP as secretarial auditors for five consecutive years from FY 2025-26, subject to shareholder approval. It also filed an investor presentation and made the audio recording of the May 22, 2025 results call available. The same-day filings did not announce a dividend or fund raise.

What did Gokaldas Exports' management say?

Management maintained consolidated FY26 revenue growth guidance of about 15% and expected 12-15% growth at the Atraco and Matrix subsidiaries. It expected margin compression of about 2% or slightly higher in H1 FY26 because of tariff absorption, with potential recovery in H2, but gave no quantitative full-year margin guidance pending tariff clarity.

Siva Ganapathi, Vice Chairman and Managing Director, said there was order traction despite headwinds and added: “There is a fair amount of order traction for us, even despite all these headwinds, we are seeing customers come to us and place orders. So margins notwithstanding, I think all of these can be recovered as we move forward. In the short term, there will be a pain in H1.”

Management identified tariff uncertainty, slower Q2 order intake and possible changes to African duty structures as risks. It said the India-UK FTA could add about $1 billion in export potential and offered a 12% duty advantage over China, while European exports were about 12% of Q4 sales.

How did Gokaldas Exports shares react?

After the filing, Gokaldas Exports fell 1.5% in five minutes, 1.3% in 15 minutes and 2.2% in 30 minutes. The stock closed 7.2% lower on the reaction day from the previous close and was down 10.8% from that close by the next day’s close; the cumulative decline was 6.0% after five sessions.

The Garments & Apparels industry median moved 1.0% lower on the reaction day, 0.1% lower by the next day’s close and 0.6% lower after five sessions. Gokaldas Exports therefore underperformed the industry median by 6.2 percentage points on the reaction day, 10.7 percentage points by the next day’s close and 5.4 percentage points after five sessions.

Past reaction-day moves were 1.4% higher on April 18, 2024, 5.8% lower on August 7, 2024, 2.6% lower on November 12, 2024 and 0.4% lower on February 7, 2025. These figures describe the recorded session moves and do not indicate a future direction.

How did other Garments & Apparels companies do?

Thirty-three other Garments & Apparels companies filed results for the quarter. Their median revenue growth was 27.1%, compared with 25.0% at Gokaldas Exports; 14 peers grew slower than the company and 19 grew faster. Of 33 peers whose profit was compared, 23 reported higher profit.