Siyaram Silk Mills Ltd share Price

Siyaram Silk Mills (SSML), a fabric and apparel manufacturer, has created a strong brand portfolio largely catering to the Tier II & III towns.

• Siyaram’s brand portfolio consists of reputed brands like Siyaram (flagship brand), Oxemberg, MSD and J Hampstead
  • Over the last decade, the company has gradually expanded its fabric and garment capacities and simultaneously managed to reduce the debt/equity from 1.0x in FY12 to 0.3x in FY22

SSML reported a strong revenue recovery with a significant improvement in the margin profile, which is its highest EBITDA margin performance.

• SSML reported revenue growth of 28% YoY to ₹ 628 crore (two year CAGR 16%; QoQ growth: 12%)
• Gross margin improved 120 bps YoY to 39.8% (Q3FY22: 45.4%). Positive operating leverage and cost control led other expense to sales ratio to decline by 198 bps YoY to 13.8%. This enabled the company to report all-time high EBITDA margin of 18.7% (up 293 bps YoY)
• Robust operational performance resulted in SSML reporting PAT of ₹ 77 crore vs. PAT of ₹ 58 crore in Q4FY21 (Q3FY22: ₹ 69 crore)

Textiles firm Siyaram Silk Mills announced Q4FY23 & FY23 results:

Standalone Q4FY23:

• Revenue from Operations for Q4FY23 grew by 10.6% to Rs 695 crore as compared to Rs 628 crore in Q4FY22
• EBITDA for Q4 FY23 grew by 3.1% to Rs 121 crore as compared to Rs 118 crore in Q4FY22. EBITDA margin for Q4FY23 stood at 17.5% as compared to 18.7% in Q4FY22
• PAT for Q4FY23 grew by 12.7% to Rs 88 crore as compared to Rs 77 crore in Q4FY22. PAT margin for Q4FY23 stood at 12.7% as compared to 12.3% in Q4FY22

Standalone FY23:

• Revenue from Operations for FY23 grew by 17.1% to Rs 2,229 crore as compared to Rs 1,903 crore in FY22
• EBITDA for FY23 grew by 10.3% to Rs 369 crore as compared to Rs 334 crore in FY22. EBITDA margin for FY23 stood at 16.5% as compared to 17.6% in FY22
• PAT for FY23 grew by 18.5% to Rs 252 crore as compared to Rs 213 crore in FY22. PAT margin for FY23 stood at 11.3% as compared to 11.2% in FY22
• Net Debt for March 2023 is Rs 208 crore. Net Debt to Equity stands at 0.02X

Commenting on the results Mr. Gaurav Poddar, Executive Director, Siyaram Silk Mills Limited said: “I am pleased to report that the board of directors have recommended a final dividend of Rs 4 per share of Face Value Rs 2 each.

We achieved significant growth in revenue while maintaining healthy EBITDA margins. This consistent growth reflects the Company's exceptional ability to engage with consumers through our brands, providing them with an unparalleled fashion experience. Our focused approach on achieving a balanced distribution strategy and expanding our product categories, alongside strong branding initiatives and the launch of new products, have been key drivers behind this outstanding performance. We are thrilled with the response we have received across all product categories, and we are confident that our product design and upcoming new categories will continue to drive growth.

Given the strong growth drivers in our businesses, we believe that India will continue to move forward along a robust growth trajectory. Our Company is dedicated to meeting the evolving demands of today's youth with our extensive range of fabrics and apparels. With our financial strength, strong brands, manufacturing expertise, technical capabilities, and widespread distribution, SIYSIL is committed to pursuing sustainable and profitable sales growth in the long run.”

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