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Gokaldas Exports loss widens
28 May '11
2 min read
Higher wage and raw material cost has resulted in Gokaldas Exports increasing its loss by 84 percent to Rs. 265.2 million for the quarter ended March 31, 2011.
This was in spite of the company being able to increase its total sales marginally by 4 percent to Rs. 3012 million during the fourth quarter compared to Rs. 2893 million during the same period in FY2010. The operating loss also fell by 14 percent to Rs. 165.9 million.
The Bangalore-based garment exporter posted a loss of Rs. 880 million during FY11 compared to Rs. 19.3 million in FY10.
Net income of the company decreased marginally to Rs. 11.45 billion in fiscal 2010-11 as against Rs. 11.56 billion in the previous fiscal. The operating loss of the company, however, increased from Rs. 219.4 million in 2009-10 to Rs. 676.2 million in 2010-11.
Besides higher wage and raw material costs, the company has cited the increase in interest costs due to withdrawal of interest subvention by the RBI, fire accident in its facility, and additional air freight cost as the factors that contributed to the loss made by the company.
The company has described the current market position as sluggish, as buyers are reducing their order flow and there is less optimism on the pricing front. It has, however, termed the declining cotton prices as a positive indicator.
The company has good orders in the pipeline for the first half of 2011-12 and is hopeful that its performance will improve in the next few months. The company is expecting more market demand in its area strongholds.
This was in spite of the company being able to increase its total sales marginally by 4 percent to Rs. 3012 million during the fourth quarter compared to Rs. 2893 million during the same period in FY2010. The operating loss also fell by 14 percent to Rs. 165.9 million.
The Bangalore-based garment exporter posted a loss of Rs. 880 million during FY11 compared to Rs. 19.3 million in FY10.
Net income of the company decreased marginally to Rs. 11.45 billion in fiscal 2010-11 as against Rs. 11.56 billion in the previous fiscal. The operating loss of the company, however, increased from Rs. 219.4 million in 2009-10 to Rs. 676.2 million in 2010-11.
Besides higher wage and raw material costs, the company has cited the increase in interest costs due to withdrawal of interest subvention by the RBI, fire accident in its facility, and additional air freight cost as the factors that contributed to the loss made by the company.
The company has described the current market position as sluggish, as buyers are reducing their order flow and there is less optimism on the pricing front. It has, however, termed the declining cotton prices as a positive indicator.
The company has good orders in the pipeline for the first half of 2011-12 and is hopeful that its performance will improve in the next few months. The company is expecting more market demand in its area strongholds.
Fibre2fashion News Desk - India
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