Gokaldas Exports Reports Mixed Financial Results for Q1 FY25

Gokaldas Exports, a midcap textile company, recently declared its financial results for the quarter ended June 2024. The company has seen a negative performance in this quarter, with a score of -10, which has improved from -16 in the last 3 months.

Despite this, there are some positive aspects to the company’s financials. The net sales for the quarter have grown by 81.12% year on year, reaching a high of Rs 932.13 crore. This is also the highest net sales in the last five quarters, indicating a positive sales trend in the near term. Additionally, the company’s cash and cash equivalents have also reached a high of Rs 127.34 crore in the last six half yearly periods, showing an improvement in short term liquidity.

However, there are some areas of concern for Gokaldas Exports. The interest cost has increased by 244.23% over the previous half yearly period, indicating higher borrowings. The company’s ability to manage interest payments has also deteriorated, with the operating profit to interest ratio being the lowest in the last five quarters. The profit before tax has also fallen by -19.94% year on year, and the profit after tax has decreased by -16.5% year on year, showing a negative trend in the near term. The earnings per share have also reached a low of Rs 3.82, indicating declining profitability for shareholders.

Moreover, the company’s debt-equity ratio has reached a high of 0.62 times in the last five half yearly periods, indicating increased borrowing to fund its operations. This may lead to a stressed liquidity situation for the company. The debtors turnover ratio has also reached a low of 6.75 times in the last five half yearly periods, showing a slower pace of settling debts.

In conclusion, while Gokaldas Exports has shown some positive growth in terms of net sales and cash reserves, there are also some concerning factors in its financial performance. Investors are advised to hold their stock in the company, as recommended by MarketsMOJO.