Vijay Kedia-backed Small-cap Company Declares 200 Per cent Dividend and Bonus Preference Shares, Profits Jumps 11 Per cent in Q2FY25

Vijay Kedia-backed Small-cap Company Declares 200 Per cent Dividend and Bonus Preference Shares, Profits Jumps 11 Per cent in Q2FY25

Rakesh Deshmukh

The company reported a 11.3 per cent YoY increase in Q2 net profit to Rs 68.2 crore, up from Rs 61.3 crore in the same quarter last year, according to a regulatory filing.

Siyaram Silk Mills Ltd, a textile manufacturing company specializing in fabrics and readymade garments, particularly men’s wear, exports to several countries, including the UAE, Australia, Bahrain, Bangladesh, Cambodia, and Canada.

On Saturday, October 26, Siyaram Silk Mills reported an 11.3 per cent year-on-year increase in net profit for the second quarter that ended September 30, 2024, reaching Rs 68.2 crore, compared to Rs 61.3 crore in the same quarter last year, according to a regulatory filing. Revenue from operations rose 3.7 per cent to Rs 608 crore from Rs 586 crore in the corresponding period of the previous year.

As per Quarterly Results at the operational level, profits increased by 1.1 per cent to Rs 89 crore in the second quarter, up from Rs 88 crore in the same period last year, with an operating profit margin of 14.6 per cent, slightly down from 15 per cent in the prior year’s corresponding quarter.

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Furthermore, the company also declared a first interim dividend of Rs 4 per equity share on shares with a face value of Rs 2 each for FY 2024-25, to be credited on or after November 14, 2024, for shareholders of record as of November 6, 2024.

Additionally, Siyaram Silk Mills approved a Scheme of Arrangement to issue bonus preference shares to equity shareholders. Under this scheme, preference shares will be issued in two series—Series I and Series II—to existing shareholders. The company has announced a bonus issue with the following ratio:

  • 4 (Four) Preference Shares - Series I of Rs 10 each, fully paid up, for every 1 (One) equity share of Rs 2 each, fully paid up.
  • 3 (Three) Preference Shares - Series II of Rs 10 each, fully paid up, for every 1 (One) equity share of Rs 2 each, fully paid up.

Today the company’s shares are trading at around Rs 536.20 each on the BSE.

Disclaimer: The article is for informational purposes only and not investment advice.

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