Siyaram Silk Mills Limited, a manufacturer of fabrics, readymade garments, and other textiles products, has announced its results for the third quarter and nine months ending December 31st, 2022.
The Company has witnessed an all-around improvement in its 9MFY23 performance, led by improved operating efficiencies, a better product mix, and rationalised marketing initiatives.
Financial Highlights
• Revenue for 9MFY23 was higher by 20% YoY. An all-around performance in the fabric and apparel business led to this strong revenue growth. Domestic market demand remains buoyant, with increasing traction from the export market as well. The Company continues its efforts to increase Revenue from both simultaneously.
• EBITDA for 9MFY23 was higher by 14% YoY. Efficient marketing strategy and positioning helped in margin expansion. However, margins remained flat YoY. Higher raw material prices coupled with other manufacturing expenses kept margins under check. However, margins for the Fabrics business remained encouraging.
• PAT for 9MFY23 was higher by 21% YoY.
Fabric Business overview:
• Fabric Business revenue reported an increase of 10% YoY to INR 1131 cr in 9MFY23. The share of Fabrics in total Revenue is 74% in 9MFY23 from 80% in 9MFY22.
• Fabric business witnessed a growth of 10% YoY; Higher pent-up demand led by solid demand revival in Tier 2 & 3 cities has led to such an increase. The Company sold 6.59 cr meters during 9MFY23, as against 6.85 cr in 9MFY22. Post-festive season, demand remains marginally weak due to inflationary trends prevailing in the economy, coupled with weaker sentiments across consumer space.
• The Company’s brands in its fabric business are Siyaram, J Hampstead, and CADINI. The Company has been consistently customer-centric and has been careering its fabric designs to meet ever-evolving fashion trends.
• The Company has newly launched its Ethnic range of products, which would further enable the Company to extend its product range.
Apparels Business overview:
• Apparels revenue reported an increase of 53% YoY to INR 286 cr in 9MFY23. The share of Apparels in total Revenue is 19% in 9MFY23 from 15% in 9MFY22.
• The top Brands in the Apparels business are Siyaram, Oxemberg & J Hamstead.
• The Apparels business has been seeing good traction. New brands and designs have helped to demonstrate good performance.
Mr. Ramesh Poddar, Chairman & Managing Director of Siyaram Silk Mills, commented on financial results, “The financial performance for 9MFY23 has been encouraging. Both, our Fabric and Apparels businesses are performing well. On the Fabric front, both Trade and Retail have witnessed an encouraging trend led by higher secondary sales and strong retail footfalls in MBOs. Volumes for the fabrics business saw some challenges in the post-festive season, which we expect to recoup in the running fourth quarter. The higher realisation is a result of our premiumisation benefits. Delivering customer needs of quality and fashionable products at a price is aiding our roadmap of premiumisation.
“The Company’s Apparel division has been exhibiting decent performance. Its continued focus on Tier II & III cities and its positioning among aspiring Indians have made the brand more reachable and appealing among a wider base of consumers. Our volume for garments remains buoyant. However, higher raw material prices have kept our margins for Q3 under check. The Company’s tactical decision to reduce EOSS has helped in improving sustainability. Overall, medium to long-term growth opportunities continue to look encouraging, and we expect demand to remain buoyant going ahead in the remaining part of the current fiscal year.
“As a part of rewarding shareholders, the Company has been declaring dividends consistently. The Company has declared an interim dividend of ₹4 per share in Q2FY23, followed by a further ₹3 per share in Q3FY23. We expect consistent growth in Revenue and profitability going ahead, giving us a strong foundation for sustained value creation for all the stakeholders.”
