Siyaram Silk Mills - Enhanced Balance Sheet Strength, Better Margin Augurs Well: ICICI Direct

Bobbins of grey silk thread sit stacked at a factory. (Photographer: Luke Duggleby/Bloomberg).

Siyaram Silk Mills - Enhanced Balance Sheet Strength, Better Margin Augurs Well: ICICI Direct

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BQ Blue’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages, asset managers and research agencies. These reports offer BloombergQuint’s subscribers an opportunity to expand their understanding of companies, sectors and the economy.

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).

Click on the attachment to read the full report:

ICICI Direct Siyaram Company Update.pdf

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