Siyaram Silk Mills Ltd

<dhhead>Letter from the Chairman & Managing Director</dhhead>

Driving excellence to maximise growth

Our focus will remain on improving our product mix, strengthening our processes, and controlling our expenses as we navigate the challenges of today to seize the opportunities of tomorrow.

Rameshkumar Poddar

Dear Shareholders,

I am happy to share with you the Company’s annual report for FY24 - a year marked by several challenges in domestic and international market. However, due to the inherent strength of the Company and initiatives taken during the year, enabled the company to maintain an almost flat one-time export sales, which is clearly a decent performance considering the muted consumer demand and inflation the prevailing geopolitical tensions. Exports witnessed de-growth, and the Indian textile and apparel industry found itself struggling through the year.

Demonstrating financial

In this backdrop, your Company posted revenue from operations at 2,087 Crore, with Fabric contributing the maximum at 1,707 Crore, followed by Garments at 273 Crore and Yarn/Knitting & Others at 107 Crore. Despite the decline in volumes, both Fabrics and Garments delivered value growth, aided by a better product mix. Exports contributed 9% of the revenues during FY24. EBITDA for the year stood at

322 Crore and PAT at 185 Crore.

Though the volatility in raw material costs had a cascading effect on the product prices and the increase was passed on to the end customers with a lag effect, the EBITDA margins remained at ~15%. This demonstrated the Company’s deep- revenue,adjustedfor rooted financial resilience and its capability to drive future growth. Debtamidto equity stood at 0.18x on the back of our asset-light future expansion strategy.

I am delighted to share that the Board of Directors has approved total dividend of 11/- (550%) per share of face value of 2/- each. We also completed a buyback of 108 Crore during the fiscal under review. These decisions reflect the Board’s confidence in the Company’s financial strength and future prospects, accentuating our commitment to delivering value to our shareholders.

Strengthening foundations to deliver excellence

As an organisation committed to delivering to the evolving needs and aspirations of consumers around the globe, we have been on a journey of exceptional innovation and sustained excellence for the past several years. FY24 was, at Siyaram’s, a year of building on our core strengths to design products for men who believe in fashion that is stylish in appeal and high in quality. Our innovation thrust continued to be oriented towards creating fabrics that are fashionable and comfortable, while offering convenience, simplicity, ease of care and distinctiveness. We redefined our sales strategy by concentrating on eliminating provision for return and replacement and improvement in the Working Capital cycle. Our strategic decision to merge the smaller format stores of Men’s Bazaar with Siyaram’s existing stores led to more favourable sales for the Company. Notwithstanding the weak market demand, we expanded our retail footprint to 247 stores across India amid optimism of retail revival in the coming quarters. We intend to accelerate the store opening and strengthen our distribution network further in FY25 as we prepare ourselves to meet the anticipated enhanced growth.

Our aim is to bring our offerings closer to the end consumer. As part of our strategy, we have initiated a new retail project and started allocating the necessary resources. As always, we will maintain a disciplined capital approach in executing this project. This will be crucial in guiding our growth strategy in the coming years.

Strategising for future growth

Our efforts, going forward, will be centered around deepening our understanding of consumer needs as we augment our diversified the transforming market demands. Continuous feedback will drive us to enhance our innovative focus, and also inspire us to boost our resource and cost efficiencies.find Coupled with investments in brand building, we are confident this will enable us to capture a larger customer wallet share in the coming years.

Besides enhancement of customer experience, our focus will be on rationalising our product mix, accelerating digital adoption, and promoting digital marketing. We believe we are on a strong growth trajectory, fuelled by innovation, smart choices and dynamic optimism. Our efforts to promote tailoring as an art will play an important role in steering this strategy.

Ensuring sustainable growth

As a responsible corporate, we remain committed to inclusive progress and value creation for all our stakeholders. We pursue the highest standards and practices with respect to the key metrics of ESG growth to bring about a positive and meaningful change in the lives of the people. Transparent, accountable and ethical governance is at the heart of this approach, which is aimed at promoting sustainable development. Our environmental conservation initiatives are focussed on minimising the carbon footprint of our operations through reduction in greenhouse gas emissions. Besides investments in solar energy, they include plantation campaigns at our locations. We also have in place a comprehensive Corporate Social Responsibility (CSR) framework, centred around investments in the right levers of societal development.

Towards a better future

Our strategy is crafted to maximise the opportunity that we see unfolding in the coming year as the economy moves towards greater stability and the consumers’ buying power increases. The expected decline in inflation and weakening of the input prices will provide the domestic brands in India a favourable opportunity to thrive, especially from the second half of FY25.

Offline and online shopping models will blend together to boost future demand, which we, at Siyaram’s, are positioned to capture at the back of our large and diversified portfolio and expanding network of stores and distributors. Our ever-evolving understanding of the market will allow us to stay relevant in the transforming business eco-system, with our commitment to delivering high-quality fabrics ensuring that we meet the varied demands and preferences of our growing customer base.

Our focus will remain on improving our product mix, strengthening our processes, and controlling our expenses asofferings,storesanddistributorstostayrelevantto we navigate the challenges of today to seize the opportunities of tomorrow. We are confident that the textile industry is set to embark on a path of recovery and Brand Siyaram’s will lead the journey, driven by the collective commitment and strategic foresight of all its stakeholders, including the government, employees and customers. Our dedication to innovation backed by technological excellence, along with financial prudence, will steer us towards enhanced growth and value creation in the years ahead. The agility with which the Company continues to adapt to the changing market dynamics and consumer preferences will ensure its continued success for a long time to come.