Siyaram Silk Mills Ltd reports an all-around performance in Q4 & FY22

Revenue grows 75%, EBITDA 287% and PAT 50x YoY

MUMBAI, India, May 9, 2022 /PRNewswire/ — Siyaram Silk Mills Limited a manufacturer of fabrics, readymade garments, and other textiles products has announced its results for the quarter and year ended 31st March 2022.

Financial Highlights (consolidated) – Q4 & FY22

The company has witnessed an all-around improvement in its FY22 performance led by improved operating efficiencies, better product mix and rationalised marketing initiatives.

Particulars (₹ cr)

Q4FY22

Q4FY21

YoY

FY22

FY21

YoY

Revenue

628

508

24%

1905

1089

75%

EBITDA

129

95

36%

368

95

287%

EBITDA Margin (%)

21

19

200bps

19

9

1000 bps

PAT

82

58

41%

216

4

5300%

Financial Highlights:

  • Revenue for the Q4FY22 was higher by 24% YoY and 75% YoY for FY22. An all-round performance among fabric and apparel business led to this strong revenue growth
  • EBITDA for Q4FY22 was higher 36% YoY and 287% for FY22. Efficient marketing strategy and positioning helped in margin expansion
  • PAT for FY22 increased by more than 50x backed by overall improvement in the operating matrix

Fabric Business overview:

  • Fabric Business revenue reported an increase of 73% YoY to INR 1554 cr in FY22. Share of Fabrics in total revenue is 81% in FY22
  • Fabric business witnessed a robust growth of 73% YoY; Higher pent up demand led by strong demand revival in Tier 2& 3 cities has led to such growth. The Company has sold 10.14 cr metres during FY22 ; a growth of 54.5% over FY21
  • 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 121% YoY to INR 257 cr in FY22. Share of Apparels in total revenue is 14% in FY22 from 11% in FY21. The company has sold 42 Lakhs pieces during FY22; a growth of 35% over FY21
  • Top Brand among the Apparel business are Siyaram, Oxemberg, and J Hampstead
  • Apparels business has been seeing good traction, new brands and designs have helped in demonstrating good performance

Balance sheet update:

The company continues to remain vigilant about its quality of growth. The company maintains its Asset light model as the only model to enhance its growth prospects. The company will continue its growth plans with its internal accruals. Debt as on 31st march stands at 253 cr. Debt equity as on 31st March, 2022 is 0.27.

Commenting on financial results, Mr Ramesh Poddar Chairman & Managing Director, Siyaram Silk Mills said, “The financial performance for FY22 has been quite encouraging. Post easing of Covid restrictions, the company has been able to report a strong recovery in the growth. On the Fabric front, both Trade and Retail have witnessed an encouraging trend led by higher secondary sales as well as strong retail footfalls in MBO’s. 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. Company’s revamping of its marketing strategy has helped in improving profitability. Along with profitability, it has also led to stability in Revenue. Overall, medium to long-term growth opportunities are encouraging and we expect demand to remain buoyant going ahead.

About Siyaram Silk Mills Ltd (SSML)

Siyaram Silk Mills Limited: BSE: 503811; NSE: SIYSIL

Siyaram Silk Mills Limited is amongst India’s most renowned manufacturers and marketers of fabrics, readymade garments, and other textiles products. The Company is famous for its high-quality fabrics and apparel using a variety of blends made up of poly viscose, cotton, wool, linen, bamboo and stretch. In addition, the Company operates and franchises a chain of retail stores, which offer menswear fashion fabrics and apparel, and accessories.

The Company sells its products under multiple brands that enjoy high recall value with consumers. They include brand names such as Siyaram, J Hampstead, Oxemberg, and Cadini. The Company has an extensive distribution network that permeates India, giving an aspiring yet underserved vast population ready access to high-quality fabrics and apparels at attractive price points. This makes Siyaram’s brands the preferred choice in India’s fast-growing yet untapped market. It is backed by highly integrated and state-of-the-art manufacturing and retailing capabilities.

The Company’s ‘asset-light’ business model has given Siyaram the mettle to continuously strengthen its balance sheet over the years and ensure business permanence. Today, the Company benefits from having the longest surviving and resilient serving portfolios of brands within India. The Company was incorporated in 1978 and is headquartered in Mumbai, India.

Forward-Looking Statement:

Certain statements in this document may be forward-looking statements. Such forward-looking statements are subject to certain risks and uncertainties like regulatory changes, local political or economic developments, technological risks, and many other factors that could cause our actual results to differ materially from those contemplated by the relevant forward-looking statements. Siyaram Silk Mills Limited will not be in any way responsible for any action taken based on such statements and undertakes no obligation to publicly update these forward-looking statements to reflect subsequent events or circumstances.

Disclaimer: The above press release comes to you under an arrangement with PR Newswire. Business Upturn takes no editorial responsibility for the same.

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