Gokaldas Exports bets on revenue growth; says 12% margin sustainable over long term

Gokaldas Exports will generate incremental revenue from Rs 340 crore of capacity expansion, Sivaramkrishnan Ganapathi, managing director, told CNBC-TV18.

“Several factories are in progress, which will deliver growth for us in next 3-5 years. Rs 340 crore odd, which we will be investing, would yield at least 4x of revenue. So Rs 1,400 crore of incremental revenue will be coming from this capex,” he said.

According to him, a margin of 12 percent is sustainable in the long term. “We will try to improve upon it as well. However, in the short run, since we are adding capacity at a brisk space we may see a margin dip,” said Ganapathi.