Textile Manufacturer: Vijay Kedia's Portfolio Stock Down 10 Per Cent Amidst Weak Q3 Results
The company’s net profit showed a modest increase of 2.2 per cent YoY, reaching Rs 45.4 crore, up from Rs 44.44 crore in the previous year.
Siyaram Silk Mills Ltd., a prominent player in the textile manufacturing sector, reported a mixed set of financial results for the third quarter of FY25. Moderate growth in net profit and higher expenses weighed on profitability, prompting a negative reaction from the market.
Financial Performance
The company’s sales grew by 14 per cent YoY, reaching Rs 570.7 crore in Q3 FY25, compared to Rs 503.4 crore in the same period last year. However, expenses rose by 15.63 per cent YoY to Rs 525.3 crore, up from Rs 454.25 crore, outpacing revenue growth.
The EBITDA declined by 3 per cent YoY to Rs 66.7 crore, compared to Rs 68.5 crore in Q3 FY24. The EBITDA margin contracted by 192 basis points, falling to 11.7 per cent from 13.6 per cent in the same quarter last year. The company’s net profit showed a modest increase of 2.2 per cent YoY, reaching Rs 45.4 crore, up from Rs 44.44 crore in the previous year.
The market reacted negatively to the Q3 FY25 results, with the stock witnessing a sharp decline of 10 per cent, closing at Rs 858.65.
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Stock Market Performance
Siyaram’s stock has delivered a 61.12 per cent return over the past year, significantly outperforming the Nifty 50, which gained 6.41 per cent during the same period. Over the last five years, the company has generated 280 per cent returns, with a market capitalization of Rs 4,328 crore. Notably, Vijay Kedia holds a 1.00 per cent stake in the company as of December 2024, reflecting his confidence in its growth potential.
About the Company
Siyaram Silk Mills Ltd., a leading textile manufacturer, specializes in fabrics and ready-made garments with a strong focus on men’s wear. The company’s product portfolio includes a wide range of offerings, such as suits, blazers, shirts, and trousers, crafted from premium yarns. Committed to international quality standards, Siyaram exports its products to several countries, including the UAE, Australia, Bahrain, Bangladesh, Cambodia, and Canada, further strengthening its global footprint.
Disclaimer: This article is for informational purposes only and not investment advice.