Gokak Textiles Faces Financial Challenges Amid Declining Sales and Rising Costs in June 2025 Results

Gokak Textiles, a microcap player in the Garments & Apparels industry, has reported its financial results for the quarter ending June 2025, revealing significant challenges. The company's evaluation has undergone notable changes, with a revision in its score reflecting the current financial landscape.
The financial data indicates that Gokak Textiles has achieved a high inventory turnover ratio of 8.65 times, demonstrating an ability to sell inventory efficiently over the past five half-year periods. However, this positive aspect is overshadowed by several concerning trends. Net sales for the quarter stood at Rs 16.67 crore, marking a substantial decline compared to the previous year. Additionally, the company reported a profit before tax less other income of Rs -12.86 crore, which has also seen a significant year-on-year decrease.

Profit after tax has reached Rs -11.60 crore, the lowest in the last five quarters, indicating ongoing financial difficulties. The operating profit margin has dropped to 5.76%, reflecting a decline in operational efficiency. Furthermore, interest expenses have risen to Rs 8.83 crore, suggesting increased borrowing costs.

Overall, Gokak Textiles is navigating a challenging financial environment, as highlighted by the recent evaluation changes.

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