Thread by @FinterestC

#Didyouknow

Gokaldas Exports Ltd. is one of the largest manufacturer and exporter of apparels in India with an annual turnover of US$200 Million?

It is the one-stop shop for the world’s most acclaimed brands.
(Thread)
#gokaldas #textile #gokex

1) GEXP is maintaining a healthy order book for FY22. The US continues to be its largest market where monthly apparel retail sales for CYTD 2021 is 6 % higher than pre-covid 2019 level and Online sales of clothing and accessories for the period is higher by 41%.

2)The resurgence of the pandemic in China, Vietnam and EU impose additional constraints on global supply chain and presents an opportunity for India.

3)The GOI is coming up with a strong support for Indian textile industry by announcing a stable policy regime, a new PLI scheme, establishing 7 new integrated textile parks on plug and play model over next 3 years and initiating discussions with several countries for FTA.

4)These are expected to maintain a healthy industry momentum that will benefit the co. for disproportional growth going ahead.

5)Capacity Expansion plans:
i)Two new plants will be operational and ramp up production in the next 2 quarters. These plants will contribute Rs.1.6 Billion to the topline following the full ramp up.

ii)New Greenfield plan in MP will be commissioned by beginning of FY23 and will contribute Rs.1.5 bn in revenue in phase 1 and an additional Rs. 1.5 bn in phase 2.

iii) Exploring a new plant in TN: This plant will be on a lease basis. No timeline given by the management. It is expected to contribute Rs 500-600 mn to revenue when production begins.

iv)Exploring a new country for expansion. GEXP is considering Bangladesh for the same. The management will take a call on the same before the end of FY22. Additionally the company is exploring a knits unit and will finalise the same by FY22-end

v)Capex of Rs 3.4 billion planned over the next 3 years. This includes the existing expansion, MP, TN & Bangladesh.

6)Financials:
Revenue stood at Rs 4.44 billion growing 84.2% QoQ & 29.8% YoY. With a strong order book, GEXP managed the production value chain well by increasing people availability, improving productivity and on-time shipments.

7)The co. continued to focus on strengthening the order book position ensuring revenue sustainability for the subsequent quarters as well. Exports revenue grew by 34.6% YoY and as indicated focus on export business will continue.

8)EBITDA was at Rs 539 million a growth of 170.5% QoQ & 62.9% YoY while EBITDA margins at 12.1% were better from 9.6% YoY & 8.2% QoQ. The management indicated increased focus on augmenting capacity (up by ~30%) while containing costs has helped deliver this growth.

9)The co. has recently concluded a QIP of Rs. 3bn @195. The proceeds will help to augment the capacity for disproportional future growth and the new capex of 3.4bn is capable of generating 4x asset turn with double digit operating margins.

10)The co. is well placed to benefit from China plus one strategy of global MNCs.

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