Siyaram Silk Mills Research Report By Centrum

Siyaram Silk Mills Ltd (SSML), for Q2FY17 reported flat numbers in-line with our expectation. Owing to muted consumer demand, revenue and net profit grew by 7% YoY to Rs. 420 crore and 6% to Rs. 27 crore, respectively. EBITDA margin was flat at 12.7%. With an aim to cater to a broad spectrum of market from mass to premium, SSML has developed and acquired wide range of brands. The company has also engaged in continuous advertising and promotions which have helped in establishing a strong brand recall. The change in product mix with better focus on high margin readymade garment segment and pick-up in consumer demand are the key future growth triggers for the company.