Gokaldas Exports signs definitive agreement to acquire apparel business of Matrix Clothing

Bangalore (India), 3rd February 2024: Gokaldas Exports Limited (“GEL”) has signed an agreement with Matrix ClothingPrivate Limited (“MCPL”) to acquire 100% of the equity share capital of Matrix Design & Industries Private Limited for an enterprise value of ₹ 489 crores, out of which ₹ 247.5 crores is being paid by way of preferential allotment of shares of Gokaldas Exports through share swap.

The Matrix Clothing group is a manufacturer of high-quality men’s, ladies’, and children’s knitwear apparel for renowned brands with major geographical exposure to Europe, the UK, and North America. The group operates out of Gurgaon, Haryana and has five manufacturing facilities (4 in Gurgaon, Haryana and 1 in Ranchi, Jharkhand).

Through this deal, GEL receives access to the knit apparel business segments, a mutually exclusive global customer base, greater access to European and the UK markets, geographical diversification and low-cost capacity expansion potential in the future.

Sivaramakrishnan Ganapathi, Vice Chairman and Managing Director of Gokaldas Exports Limited said, “We are very excited to welcome Matrix’s leadership team, and their employees to the GEL group. We have always believed in continuously adding production capacity at strategic locations enhancing our value proposition to our valued customers. The acquisition of Matrix is an important step in this direction as it is strategically relevant, possesses a good complementary customer base, operationally strong, and above all, a leader in its own sphere.”

GEL was supported by JM Financial Limited as transaction advisor, Anagram Partners as legal advisor and the BDO India team as the partner for due diligence.

Financial Results for Q3, FY24

Gokaldas Exports Limited today declared its financial results for the quarter ended December 31, 2023. The Company reported a consolidated revenue of ₹ 559.8 Crore for the quarter compared to ₹ 528.1 Crore in the same quarter last year and a consolidated profit before tax of ₹ 43.5 Crore compared to ₹

47.8 Crore in the previous year Q3 FY23.

Key Highlights:

 (Figures in ₹ Crore)

Parameters 3QFY24 2QFY24 3QFY23 YoY QoQ 9MFY24 9MFY23 YoY
Total Income 559.8 509.0 528.1 6% 10% 1591.0 1717.1 -7%

EBITDA 70.5 55.8 72.4 -3% 26% 194.1 218.6 -11%
EBITDA Margin 12.6% 11.0% 13.7% -112 bps 163 bps 12.2% 12.7% -53 bps
PBT 43.5 29.3 47.8 -9% 48% 116.1 147.61 -21%
PAT 30.4 23.7 40.6 -25% 28% 86.7 125.8 -31%

Note: 1Excludes exceptional income of ₹ 6.1 Crore for 9MFY23.

Commenting on the company’s third-quarter performance, Mr. Sivaramakrishnan Ganapathi, Vice Chairman and Managing Director of Gokaldas Exports said, “Our performance reflects a good recovery, both on a YoY and sequential basis, as we have overcome most of the business headwinds prevalent in the previous quarters. We intend to build on the revival and continue the growth momentum. We will stay focused on improving operating parameters and remain confident in the medium to long- term prospects of the company.”