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Gokaldas Exports Q3 Results Review - Resilient Performance Amid A Challenging Environment: Systematix

Gokaldas Exports continued to manage its working capital well, generated adequate FCF to support the company’s growth ambitions.

<div class="paragraphs"><p>Closeup image of various colour threads. (Source:&nbsp;Sergejs Rahunoks/ freepik)</p></div>
Closeup image of various colour threads. (Source: Sergejs Rahunoks/ freepik)

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Systematix Research Report

Gokaldas Exports Ltd.’s revenue was flat YoY at Rs 5.2 billion (11% below our estimate), amid tough macroeconomic conditions in its key market, U.S.

We note that India’s apparel exports during the quarter was also flat YoY at $4 billion. During Q3, Gokaldas Exports’s volume remained flat YoY and the company strongly focused on improving employee and operational productivity, balanced the orders on hand with capacities and reduced operating expenses which led to 80 bps YoY improvement in Ebitda margins.

Gokaldas Exports continued to manage its working capital well and generated adequate free cash flow to support the company’s growth ambitions.

Gokaldas Exports’ order book has been intact, given its diversified set of customers. Management expects near-term headwind, given the expected slowdown in the U.S., while juggling the continuing weak demand in Europe.

Demand likely to recover from Q3 FY24 once the export markets revive and brands return to meet their inventory needs. The company expects to end FY23 with Rs 2.2 billion plus revenue.

Gokaldas Exports remains optimistic on FY24 sequential growth, on easing raw material prices, new capacity additions, shifting of business away from China and Bangladesh, while strengthening relations with customers.

Click on the attachment to read the full report:

Systematix Gokaldas Exports Q3FY23.pdf
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