How Did Gokaldas Exports Achieve a 19.3% Profit Increase in Q4?
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Synopsis
Gokaldas Exports Limited has reported remarkable growth in its Q4 results, showcasing a 19.3% rise in net profit. Despite rising expenses, the company has successfully navigated financial challenges and achieved significant revenue gains. Discover how strategic management and growth opportunities are shaping the future of this apparel giant.
Key Takeaways
- Net profit climbed by 19.3% YoY to Rs 52.86 crore.
- Profit before tax surged by 84% to Rs 79 crore.
- Total income increased by 27% to Rs 1,035 crore.
- EBITDA margins improved by 272 basis points.
- Record total income of Rs 3,917 crore for FY25.
Mumbai, May 22 (NationPress) The apparel manufacturer and exporter Gokaldas Exports Limited announced impressive results for the fourth quarter (Q4) of FY25, with a consolidated net profit rising over 19.3% year-on-year (YoY) to Rs 52.86 crore, compared to Rs 44.28 crore in Q4 FY24.
The company also recorded a significant increase in profit before tax (PBT), which jumped by 84% YoY to Rs 79 crore in the final quarter of FY25.
However, the quarter experienced a notable escalation in total expenses, which grew by 23.32% YoY to Rs 955.8 crore in Q4 FY25, up from Rs 775.03 crore in Q4 FY24.
Despite rising expenses, the company's revenue from operations surged by nearly 25%, reaching Rs 1,015.33 crore, which helped in maintaining robust overall financial health.
The total income for the quarter also saw a 27% increase, amounting to Rs 1,035 crore, driven by enhanced productivity and effective cost management.
Even with the uptick in expenses, the company successfully enhanced its profitability and strengthened its margins, with EBITDA margins improving by 272 basis points compared to the same period last year.
For the entire financial year 2025, Gokaldas Exports achieved a record total income of Rs 3,917 crore, reflecting a 63% increase from the previous financial year.
Profit before tax for the year increased by 37% to Rs 218 crore in FY25, as reported in its stock exchange filing.
Commenting on the results, Sivaramakrishnan Ganapathi, Vice Chairman and Managing Director of Gokaldas Exports, stated, “FY25 was a pivotal year for us as we consolidated acquisitions and achieved healthy growth in income and profits.”
“While we encounter challenges such as the reciprocal tariff imposed by the US that could affect margins, prospects like the India-UK Free Trade Agreement instill optimism for future growth,” he added.
Founded in 1979, Gokaldas Exports is among India’s largest apparel manufacturers and exporters, catering to over 50 countries globally.
With more than 30 production units and a workforce exceeding 51,000 employees, the company produces around 87 million garments each year.
Point of View
I view Gokaldas Exports' recent financial results as a testament to the resilience and strategic foresight of Indian manufacturing amidst global challenges. Their ability to boost profitability while managing rising costs highlights their commitment to excellence and adaptability. This is a crucial narrative reflecting the broader trends in the apparel industry.
NationPress
23/07/2025
Frequently Asked Questions
What factors contributed to Gokaldas Exports' profit increase?
Gokaldas Exports' profit increase can be attributed to robust revenue growth from operations, effective cost management, and productivity improvements despite rising expenses.
How did total expenses change in Q4 FY25?
Total expenses in Q4 FY25 increased by 23.32% YoY, reaching Rs 955.8 crore, up from Rs 775.03 crore in Q4 FY24.
What is the total income for Gokaldas Exports in FY25?
Gokaldas Exports achieved a record total income of Rs 3,917 crore in FY25, marking a 63% increase from the previous financial year.
What challenges does Gokaldas Exports face?
Gokaldas Exports faces challenges such as reciprocal tariffs imposed by the US, which could impact margins, but they also see opportunities in agreements like the India-UK Free Trade Agreement.
When was Gokaldas Exports established?
Gokaldas Exports was established in 1979 and has since become one of India's largest apparel manufacturers and exporters.
