Siyaram Silk Mills - Enhanced Balance Sheet Strength, Better Margin Augurs Well: ICICI Direct
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ICICI Direct Report
Q4 generally tends to be a strong quarter for Siyaram Silk Mills Ltd. with revenue contributing ~32% to annual sales.
The company was back in a positive growth trajectory in Q4 FY21 after five consecutive quarters of negative growth, partly supported by a benign base.
Revenue grew 9% YoY (33% QoQ) to Rs 507.1 crore.
Fabric division (85% of sales) had witnessed a recovery at a faster clip compared to its garments division.
Gross margins (including processing charges) improved 167 basis points YoY to 38.6% but continues to below their average of ~45% (owing to higher discounting and schemes given to dealers/distributors).
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