Textile stock declares 200% dividend, check record date and Q2 performance

The company said today in a stock exchange filing that “This is to inform you that our Board at its meeting held on Thursday, 3rd November, 2022, has inter alia Considered and declared 1st Interim Dividend of Rs.4/- (200%) per equity share on the Paid up Equity Shares of Rs. 2/- each, for the Financial Year 2022-23. The Interim Dividend will be credited/paid/ dispatched on or after 23rd November, 2022 as per applicable provisions of Companies Act, 2013, to such shareholders as on Record Date i.e. 14th November, 2022.”

In Q2FY23, the company reported net revenue of ₹636 Cr compared to ₹480 Cr in Q2FY22 and ₹399 Cr in Q1FY23, representing a YoY growth of 32% and a QoQ growth of 59%. The net revenue climbed 45% YoY from ₹714 Cr in H1FY22 to ₹1035 Cr in H1FY23. The company reported an EBITDA of ₹129 Cr in Q2FY23 compared to ₹91 Cr in Q2FY22 and ₹59 Cr in Q1FY23, representing a YoY growth of 41% and a QoQ growth of 117%. The EBITDA surged 47% YoY from ₹128 Cr in H1FY22 to ₹188 Cr in H1FY23. The EBITDA margin climbed to 20% in Q2FY23 from 19% in Q2FY22 and 15% in Q1FY23.

Siyaram Silk Mills Ltd declared a net profit of ₹80 Cr in Q2FY23 compared to ₹53 Cr in Q2FY22 and ₹41 Cr in Q1FY23, representing a YoY growth of 52% and QoQ growth of 94%. The profit after tax (PAT) or net profit climbs 70% YoY from ₹65 Cr in H1FY22 to ₹111 Cr in H1FY23. Revenue from the fabric business grew by 30% YoY to INR 736 Cr in H1FY23. Fabrics’ contribution to overall revenue dropped 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 in a statement that, 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.

Commenting on financial results, Mr 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. Doubledigit 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”.

The shares of Siyaram Silk Mills Ltd closed today at ₹479.50 apiece, up by 0.30% from the previous close of ₹478.05. On a YTD basis, the stock has gained 10.23% so far in 2022.