For the second quarter Gokaldas Exports’ revenue grew 30 per cent. Earnings before interest, tax, depreciation and amortization (EBITDA) jumped 63 per cent. Margins improved 250 basis points to 12 per cent from nine per cent in the year ago period. Net profit was up three-fold.

A strong order book, increased focus on augmenting capacity (up by around 30 per cent) while containing costs has helped deliver this growth. With a strong order book, the company has ensured a rapid expansion of its production capacity. It managed the production value chain well by increasing manpower availability, improving productivity and on-time shipments. The management continues to focus strengthening the order book position for the coming quarters as well.

Credit metrics and liquidity position witnessed a healthy improvement, primarily on the back of the equity infusion made in October 2021. A portion of the funds have been utilized towards reducing debt levels, with the surplus to be used to meet incremental working capital and capacity expansion requirements. Reduction in net debt levels, coupled with the growth in operating profits, is expected to result in key credit metrics including net debt to operating profits and PBDITA to interest and finance charges to be at around 1 times and 4.5 times, respectively, in fiscal2022.