Gokaldas Exports’ net loss doubles to Rs 37 cr

Gokaldas Exports, the Bangalore-based garments exporter

controlled by global private equity major Blackstone, has registered a net loss of Rs 37 crores during the third quarter of FY12. Almost double compared to net loss of Rs 16.7 crores during the corresponding quarter of previous fiscal. Sales dropped by 30 per cent to Rs 208 crores. For the quarter, the company has clocked an EBIDTA of Rs 4.4 crore showing a margin of 2 per cent which compares favorably against 1.7 per cent reported in Q2 FY12 and loss of 1 per cent for Q3 FY11.

The better numbers in the EBIDTA level is due to sustained efforts on cost and margin management. On the other hand, overall volumes have been under pressure this quarter due to weaker demand from the slowdown hit US and European markets. “However, with our efforts of business development in the earlier part of this year, we have been able to acquire new customers and have started received orders from them. These are likely to build over the coming quarters,” the company statement said.

With a stable pricing regime for cotton and the US market providing some optimism for the sector, Gokaldas continues to work closely with its customers, existing as well as new ones and to increase its share of business from them and also expand the categories being serviced for them.

Meanwhile, private equity giant Blackstone has pledged its entire equity stake in Gokaldas Exports, the country's largest apparel exporter, to raise funds. Blackstone had acquired 50.1 per cent stake in Gokaldas Exports from the Bangalore-based Hinduja family for $116 million in August 2007. Later, the PE fund increased its holding to 68.27 per cent through an open offer with an investment of about $45 million.