Siyaram Silk Mills Limited, a manufacturer of fabrics, readymade garments, and other textiles products, has announced its results for the second quarter and half year ended 30th September 2022.
Financial Highlights (Consolidated) – Q2 & H1FY23
The Company has witnessed an all-around improvement in its Q2FY23 performance, led by improved operating efficiencies, a better product mix and rationalised marketing initiatives.
• Revenue for Q2FY23 was higher by 32 percent YoY and 45 percent YoY for H1FY23. 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 export market as well. Company continues its efforts to increase revenue pie from both of them simultaneously.
• EBITDA for Q2FY23 was higher by 41 percent YoY and 47 percent for H1FY23. Efficient marketing strategy and positioning helped in margin expansion.
• PAT for Q2FY23 was higher by 52 percent YoY and 70 percent for H1FY23 YoY.
Fabric Business overview:
• Fabric Business revenue reported an increase of 30 percent YoY to Rs. 736 cr in H1FY23. The share of Fabrics in total revenue is 70 percent in H1FY23 from 77 percent in H1FY22.
• Fabric business witnessed a growth of 30 percent YoY; higher pent-up demand led by strong demand revival in Tier II & III cities has led to such an increase. The Company sold 4.14 cr metres during H1FY23, a growth of 11 percent over H1FY22.
• 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.
Apparels Business overview:
• Apparels revenue reported an increase of 92 percent YoY to Rs. 216 cr in H1FY23. Share of Apparels in total revenue is 21 percent in H1FY23 from 15 percent in H1FY22.
• Top Brands in the Apparel business are Siyaram, Oxemberg & J. Hampstead.
• Apparels business has been seeing good traction. New brands and designs have helped to demonstrate good performance.
Commenting on financial results, Ramesh Poddar, Chairman & Managing Director, Siyaram Silk Mills, said, “The financial performance for H1FY23 has been quite encouraging. Our both 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. Our volumes and realisation both have seen robust growth. Double-digit volume growth testifies to our marketing and product positioning strategy to reach a more extensive customer base. 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 strong performance. Its continued focus on Tier II & III cities and its positioning among aspiring Indians have made the brand more reachable and acceptable among the masses. The Company’s tactical decision to reduce EOSS has helped in improving profitability. Along with profitability, it has also led to stability in earnings. Overall, medium to long-term growth opportunities are encouraging, and we expect demand to remain buoyant going ahead in the current fiscal year.”