with a market valuation of 2,219.06 crore, Siyaram Silk Mills Limited is a small-cap company engaged in the textile industry. Siyaram Silk Mills Pvt. Ltd. is a renowned textile company in Sri Lanka, Middle East and India. The company’s product lines include textiles, apparel, home goods, retail, export and yarn. The firm announced its Q2 results and the board of directors approved a 200% dividend to eligible shareholders on November 3, 2022.
The Company in a stock exchange filing today said that “It is to inform you that our Board in its meeting held on Thursday, the 3rd November, 2022, inter alia, announced the first interim dividend of 4/- (200%) considered and declared. per equity share on paid up equity shares of Rs. 2/- each, for the financial year 2022-23. Interim dividend on or after November 23, 2022 as per the applicable provisions of the Companies Act, 2013 The credit/payment/remittance shall be made to such shareholders on the record date i.e. November 14, 2022.”
In Q2FY23, the company recorded a net revenue of 636 crores as compared to 480 cr in Q2FY22 and 399 crore in Q1FY23, representing a year-on-year growth of 32% and QoQ growth of 59%. Net revenue climbed 45% year over year H1FY22 to . 714 crore in 1035 crores in H1FY23. Company Reported EBITDA 129 crores in Q2FY23 as compared to 91 crore in Q2FY22 and 59 crore in Q1FY23, representing a year-on-year growth of 41% and QoQ growth of 117%. EBITDA grew by 47% annually H1FY22 to . 128 crore in 188 crore in H1FY23. EBITDA margin climbed to 20% in Q2FY23, from 19% in Q2FY22 and 15% in Q1FY23.
Siyaram Silk Mills Ltd declared net profit of As compared to 80 crores in Q2FY23 53 crore in Q2FY22 and 41 crore in Q1FY23, representing a year-on-year growth of 52% and QoQ growth of 94%. Profit after tax (PAT) or net profit climbs 70% annually H1FY22 to . 65 crore in 111 crore in H1FY23. The revenue from the clothing business grew 30% year-on-year to Rs 736 crore in the first half of FY23. The contribution of Fabrics to the total revenue declined from 77% in H1FY22 to 70% in H1FY23. Revenue from apparel was up 92% YoY to INR 216 Cr in H1FY23. Apparel accounted for 21% of total revenue, up from 15% in H1FY22.
Siyaram Silk Mills said in a statement that this strong growth in revenue has been driven by overall performance in the clothing and apparel business. Demand in the domestic market continues to be bullish, as well as gaining traction from the export market.
Commenting on the financial results, Mr. Ramesh Poddar, Chairman and Managing Director, Siyaram Silk Mills said, “The financial performance for H1FY23 has been very encouraging. Both our Fabric and Apparel businesses are performing well. On the Fabric front, Both business and retail. Higher secondary sales and MBO have seen an encouraging trend led by strong retail customers. We have seen strong growth in both volumes and realizations. Doubledigit volume growth has seen our marketing and marketing efforts to reach a more extensive customer base. Product positioning testifies to strategy. High realization is the result of our premiumization advantages. Delivering customer needs of quality and fashionable products at one price is aiding our roadmap of premiumization. The apparel division of the company exhibits strong performance Its continued focus on Tier II and III cities and its positioning among interested Indians has made the brand more accessible and acceptable to the masses, to reduce EOSS. helped to improve. This has brought stability in profits as well as earnings. Overall, the medium to long-term growth opportunities are encouraging, and we expect the demand momentum to continue in the current fiscal.
Shares of Siyaram Silk Mills Ltd closed today 479.50 each, up 0.30% from previous close 478.05. On a YTD basis, the stock is up 10.23% so far in 2022.
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