Siyaram net profit rises in Q2

02 Nov '11

2 min read

Siyaram Silk Mills Limited (Siyaram's), the leading producer of blended fabrics in India, has reported a net profit of Rs. 170 million during the second quarter of current financial year, showing a year-on-year rise of 16.9 percent.

Owing to higher volumes and realization, especially in the yarn dyeing segment, the company's net sales increased to Rs. 2.44 billion, a growth of 13.5 percent year-on-year and 34.9 percent on a quarter-on-quarter basis.

Lower raw material cost during the quarter helped the company to increase its earnings before interest, taxes, depreciation and amortization (EBITDA) by 68 basis points y-o-y to 13.4 percent. However, the decline in the cost of raw material was offset, to an extent, by increase in employee cost.

In 2010-11, Siyaram's yarn segment achieved capacity utilization of 57 percent, as against 41.9 percent in 2008-09. The company expects this to improve further to 80 percent by end of 2011-12.

During financial years 2011-12 and 2012-13, Siyaram's proposes to add 286 looms in a phased manner in its fabric segment to take the tally of total looms to 765. It also plans to add 400 machines in its garment segment.

Siyaram's has presence across the country through over 40,000 points of sale and has a strong brand presence with brands like Siyaram, Mistair, and J Hampstead.

Fibre2fashion News Desk - India

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