Mumbai-based apparel manufacturer, Gokaldas Exports, is looking for 15-20 percent growth in FY19 and reasonably good EBITDA (earnings before interest, taxes, depreciation, and amortisation) margins.
In an interview to CNBC-TV18, Sivaramkrishnan Ganapathi, managing director, said the revenues in Q1 were highest for the first quarter in the last ten years.
"The all-around good performance was possible due to strong cost management, better capacity utilisation, lower wastage, material consumption management, stronger procurement control etc. This kind of performance is sustainable going forward as well," Ganapathi said.
Ganapathi said, "There is a scope for improvement in margins by few percentage points if topline growth momentum was maintained and continue managing operations in a tight manner going forward. For Q1, the EBIT (Earnings before interest and taxes) margins were at 5.9 percent."
The qualified institutional placement (QIP) funds would be utilised towards capex of our factories and additional factory in Andhra Pradesh, which would start operations soon around Q3-Q4. Also plan to set up one more factory by end of the current fiscal, he added.
Gokaldas Exports reported Q1 net profit of Rs 4.05 crore against loss seen earlier period and has also been a significant improvement on the margin front.
The year-on-year (YoY) first quarter revenues were up 20 percent at Rs 284 crore against Rs 237 crore. Gross margins were up at 55 percent against 47 percent YoY.