Don’t miss the latest developments in business and finance.

Boosted by one-time other income, Gokaldas Exports reports profit

It had been in the red for the past many quarters due to weak demand

Image
Raghuvir Badrinath Bangalore
Last Updated : Nov 13 2013 | 3:14 PM IST
Blackstone Group controlled Bangalore-based garments exporter has reported a Rs 1.8 crore net profit for the second quarter of FY14 as compared to a net loss of Rs 34 crore for the corresponding previous quarter, riding on a one time other income of Rs 10.4 crore.  The company, which has been in the red for the past many quarters due to weak demand in the global scenario has reported a 16% increase in revenues to Rs 279 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 Exports management said.

The company added that this has been a profitable quarter for the company with PBT of Rs 1.8 crore and it compares favorably versus a loss of Rs 34 crore in the corresponding quarter of previous year. EBIDTA for the quarter is Rs 17.4 crore which is a favorable swing of Rs 36.3 crore as compared to a loss of Rs 18.9 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. We have taken steps to sustain focus on productivity, cost management and measures to enhance profitability," Gokaldas management added.

Also Read

First Published: Nov 11 2013 | 9:45 PM IST

Next Story