Date:26/05/2006 URL: http://www.thehindubusinessline.com/2006/05/26/stories/2006052602350200.htm

Back Gokaldas Exports full-year net up 54%

Our Bureau

Higher capex, rupee volatility impacted the margin

Bangalore , May 25

Gokaldas Exports has posted a 54-per cent increase in net profit to Rs 60.88 crore during 2005-06 while its revenues increased 23.33 per cent to Rs 888 crore.

During the fourth quarter, the company's sales were Rs 230 crore while its net profit was Rs 15.03 crore.

The operating margin stood at 11.14 per cent.

The annual PBT is Rs 67.94 crore, a statement from the company said.

The capex for the current year is Rs 86 crore (Rs 39 crore).

The depreciation also has been higher to the tune of 56 per cent at Rs 18.07 crore (Rs 11.57 crore).

As a consequence of this high capex, deferred tax liability has also increased.

For FY 06 a sum of Rs 3.33 crore has been provided towards deferred tax liability while for FY 05 it stood at Rs 2.68 crore.

The provision for current taxation, including fringe benefit tax and deferred tax is Rs 7.06 crore (Rs 4.11 crore), an increase of 72 per cent.

Added to this increase in capex, the rupee volatility also did impact the margin to a certain extent.

The board has recommended a dividend of Rs 3 per share of Rs10. Dividend paid for last year was Rs 2 per share.

More than 80 per cent of the company's revenues are generated from the export of outerwear and `bottoms.'

Both these items have remained the key components to revenue generation for the company.

Outerwear include both sportswear and winterwear and bottoms include casual pants, chinois, linen trousers, denim jeans and the like.

The statement said the new laundry facility at Bangalore will be commissioned by the end of May 2006.

This will give a big impetus to the sale of washed bottoms and special washed outerwear. Washed garments currently have a big demand from the Western countries.

The company's statement said the knitwear unit at Bangalore, which was commissioned this year, is on track with a good productivity and steady flow of orders.

The expansion programme at Chennai, Hyderabad, Mysore and Bangalore is under progress.

The Chennai SEZ factory is under construction, and will be commissioned in this financial year.