Growth was driven by higher shipments to two major U.S. customers and contributions from a strategic partner in Korea. Automation-driven efficiency gains and a richer U.S. customer mix supported margin expansion. Operating cash flow swung to a $2.5 million inflow from a $6.5 million outflow in the prior-year quarter. Cash and restricted cash totaled $14.1 million at June 30, with net working capital of $38.1 million.
The board approved a regular quarterly dividend of $0.05 per share, payable August 24 to shareholders of record August 17. The stock opened at $5.00 on the earnings day, carrying a market capitalization of $63.5 million, a P/E of 17.86, and a beta of 1.03.
Management highlighted the duty-free access as a competitive advantage that could attract new business, but flagged geopolitical risks in the Middle East that may affect export logistics and raise transportation costs for raw materials imported from Asia. Interest expense rose to $549,353 from $355,848, largely due to supply-chain and letter-of-credit financing. Guidance for the fiscal second quarter calls for revenue of $49-$51 million and gross margin of 14-15%, below the 16.4% achieved in Q1.
With the stock trading near the consensus $5.00 target and the tariff benefit now priced in, the key question is whether Jerash can sustain margin momentum while navigating regional logistics risks and higher input costs.
Sources: Source 1 · Source 2 · Source 3 · Source 4 · Source 5 · Source 6
