Gokaldas exports limited conducted their Q4 FY 2022 conference call today at 11:30 am.
β With a goal to sustain and grow its productivity levels to a new level.β
Here are the key takeaways..
β With a goal to sustain and grow its productivity levels to a new level.β
Here are the key takeaways..
Business overview
- Company has reported strong results during this period.
- This is due to strong growth in the volumes and increase in the average realisation per piece.
- Company has reported strong results during this period.
- This is due to strong growth in the volumes and increase in the average realisation per piece.
- In terms of product category, there is a constant shift in their casual wear segment and outerwear segment.
- In relationship management, with upgradation of their skills and technology they are able to meet the demands of customers.
- In relationship management, with upgradation of their skills and technology they are able to meet the demands of customers.
- About 44% of their client base has a decade long relationship with them and is expected to continue.
- In terms of new customer addition, the company in turn has generated 15% from new customers.
- In terms of new customer addition, the company in turn has generated 15% from new customers.
- The company works under 40 PLI MMF codes has able to generate an export of 113 crores during the period. But it targets to beat its past levels.
- On supply front, Company is slowly increasing their domestic purchases compared to imports.
- On supply front, Company is slowly increasing their domestic purchases compared to imports.
- Their factory is getting ready in madhyapradesh for Pli subsidy, this will help them to grow 200 crore revenue with 11% as their incentive and another 25% incentives.
- They will get their benefits by FY 25.
- They will get their benefits by FY 25.
- In global markets, company has seen a strong recovery in their North American markets, but in other areas itβs yet to beat its pervious year performance.
- More focus is done on America and less in Europe as itβs more segmented place and have African competition.
- More focus is done on America and less in Europe as itβs more segmented place and have African competition.
- Company is still working on their Bangladesh project, in which they expect to set up their plant and build orders by second half period.
- The company has gained benefit from Covid from china and Vietnam but not from supply issue in Pakistan and Sri Lanka.
- The company has gained benefit from Covid from china and Vietnam but not from supply issue in Pakistan and Sri Lanka.
- In terms market share, they look it differently with based a big giant as their benchmark. So, with in India as the economy as their base they got huge opportunities to grow.
- Company is looking for the FDA between usa and uk to gain the best opportunities that they can get.
Investments
- In terms of Capex , they invested in modernisations and capacity augmentation of their existing units.
- About 84 crores are invested for it in Total along with the new initiatives that the company has taken during this period.
- In terms of Capex , they invested in modernisations and capacity augmentation of their existing units.
- About 84 crores are invested for it in Total along with the new initiatives that the company has taken during this period.
- For upcoming years, company has decided to make an investment of 20 crores for next 2 years.
- The new capacity and initiatives will be taken by the company to meet all demands and survive any situation that comes up.
- They expect to spent 280 crores along above 40 crores.
- The new capacity and initiatives will be taken by the company to meet all demands and survive any situation that comes up.
- They expect to spent 280 crores along above 40 crores.
- The plants in Karnataka and other states are on verge to be in full capacity usage.
- In their productivity front , company is able to grow at 3% and expect it to grow it in similar way.
- 2 Karnataka and 1 Tamil Nadu plant generated 40 cr revenue in Q4.
- In their productivity front , company is able to grow at 3% and expect it to grow it in similar way.
- 2 Karnataka and 1 Tamil Nadu plant generated 40 cr revenue in Q4.
- 220 crore run rate per year is their capacity. The FY 22 full year Capex was 200 crore and further investments will be made in times to come.
- This investments are not just green field but some brownfield was also done.
- This investments are not just green field but some brownfield was also done.
Financials
- The revenue from operation have grown by 58.1% on YoY and 12.4% on QoQ basis.
- Their EBITDA levels have jumped 109.4% on YoY and 26.7% on QoQ basis.
- The revenue from operation have grown by 58.1% on YoY and 12.4% on QoQ basis.
- Their EBITDA levels have jumped 109.4% on YoY and 26.7% on QoQ basis.
- The Net Profit levels have increased in more then 3-4 folds over the previous years.
- This is because of higher volume and superior cost management.
- In terms of ESPOs, itβs full calculation is yet to be done.
- This is because of higher volume and superior cost management.
- In terms of ESPOs, itβs full calculation is yet to be done.
- Company during the period has been able to reduce its gross borrowing by 302 crores.
- They have been able to maintain a strong hold over their current assets and further with effective management they have been able to reduce their working capital days to 70.
- They have been able to maintain a strong hold over their current assets and further with effective management they have been able to reduce their working capital days to 70.
- Though the raw materials prices are rising, they has the ability to pass on the cost to customer and they are able to reduce the cost per labour pressure post the productivity increase.
- The cost pressure for their 33000 employees are been taken care.
- The cost pressure for their 33000 employees are been taken care.
- Their logistics and freights costs were also all time high during FY22 but their involvement in contract based deal has helped them to mitigate this risk.
- Their net debt / equity levels have reached their all time low since 2018 to 0.05%.
- Along this company is cash rich with 167 crores of cash and cash eq.
- Along this company is cash rich with 167 crores of cash and cash eq.
- Their revenue is majorly grown with the help of volume growth and less by the price factor.
- When the company receives an enquiryβs they do a proper cost benefit analysis and set a perfect margins for them before gaining their supplies to make it.
- When the company receives an enquiryβs they do a proper cost benefit analysis and set a perfect margins for them before gaining their supplies to make it.
- The price quotations are locked by their supplier by their month before.
- Major of their orders are short term natured and in terms of continuous supply like 6 month period different negotiations are made.
- Major of their orders are short term natured and in terms of continuous supply like 6 month period different negotiations are made.
- The target for FY 23 is to beat their 500 crore run rate. And along with new capacity they have a strong growth momentum in their favour.
- For garment business,q3 and q4 are main time for lots of reasons.
- Company is very confident for its growth in Fy23.
- For garment business,q3 and q4 are main time for lots of reasons.
- Company is very confident for its growth in Fy23.
Loading suggestions...