The Hindu Business Line : Removal of quota curbs lifts apparel co Gokaldas sales 53%

A press statement from Gokaldas Exports said as quota restrictions had been removed volumes in the third quarter were comparatively higher than that in the same quarter in 2004-05. It said export sales for the third quarter was Rs 211 crore and domestic sales were Rs 3 crore. Gokaldas Exports' sales to the US were 70 per cent of the total sales while it was 25 per cent to the EU and the rest to other countries. A company official said as Gokaldas Exports became a listed company in 2005, net profit figures for the third quarter of 2004-05 was not available.

The statement said the company expects to achieve the targeted growth of 15-20 per cent because of a strong order position.

The company's net profit for the third quarter was Rs 15.72 crore which works out to 7.33 per cent of the total turnover. The PBIDT for the third quarter is Rs 24.04 crore, while PBIDT margin stands at 11.22 per cent. Depreciation for the third quarter stands at Rs 4.99 crore compared with Rs 4.23 crore for the second quarter for 2005-06. The increase in depreciation is because of additional capital expenditure during the current financial year. The total employee strength as of December 2005 stands at 40,500.

The statement said the volatility of the rupee did not make an impact on the company's realisations because of a good portion of the exposure being hedged and also because of considerable imports. Also, with the decline in pricing pressure, a very conducive atmosphere for growth is anticipated, the statement said.

The company said it is in the process of acquiring 10 acres of industrial land at Hyderabad to set up a garment plant.

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