Last week, the government approved a scheme for rebate of all state and central embedded levies for apparel and made-up textile segments.Sivaramkrishnan Ganapathi, MD of Gokaldas Exports, spoke to CNBC-TV18 about the development.
Ganapathi said the company would gain about 3 percent of the export revenue from the tax rebate provided by the government.
“In 2017, the government had withdrawn a certain amount of levy with the imposition of GST and with this move now they have restored back a significant amount of it,” he said, adding that the underlying embedded taxes in the value chain has been rebated back to the exporters, which was a much-awaited move.
According to Ganapathi, the gain from this tax rebate would directly flow to the EBITDA.
"Expect more than 15 percent revenue growth and anticipate some turnaround to flow directly to the net profit, in the FY20," he said.
With regards to debt, Ganapathi said, "Including bill discounting it is around Rs 275 crore running at full capacity utilisation. The debt will increase in proportion to revenues."