The Hindu Business Line : Gokaldas Exports turnover crosses Rs 1,000 cr

Bangalore May 24 In a significant milestone amidst the fluctuating rupee strength against dollar, Gokaldas Exports crossed the Rs 1,000-crore mark in its turnover for the year ended March 31, 2007. The company reported a net profit of Rs 70.68 crore against Rs 60.88 crore last year on a total income of Rs 1,039.5 crore.

It also announced a dividend of Rs 2 per share (40 per cent) with a face value of Rs 5.

The EBIDTA (earnings before depreciation, interest, depreciation and amortisation) for the year rose 12.49 per cent (11.64per cent).

During the last quarter of the FY 2007, the apparel company's net profit surged to Rs 18.15 crore against Rs. 15.04 crore for the corresponding period last year. Its turnover was Rs 276.68 crore (Rs 248.87 crore).

Competition

Despite the strong rupee and competition from the neighbouring countries are the negative factors for the year 2007-08, the company hopes to maintain its steady growth rate of 15 per cent due to its strength of design and value addition.

The impact of the strong rupee would be countered by sizable imports (Rs 350 crore for the whole year) and also by maintaining 10 per cent of the contracts in Euro currency. The balance exposure is being taken care of by covering a good portion of the US Dollar in the forward market suitably. "This strategy of risk management helped the company reduce the onslaught of the rupee's position," said Mr Rajendra J. Hinduja, Executive Director (Finance).