Ethnic apparel retailer Sai Silks Kalamandir has reported that its net profit in the March quarter was up 45 per cent at ₹29 crore against ₹20 crore logged in the same period last year on expansion and better margin..

Income was up 13 per cent at ₹368 crore (₹327 crore). The company has declared a dividend of ₹1 per equity share. EBITDA increased 7 per cent to ₹54 crore (₹ 51 crore).

In FY’24, the company’s net profit was up three per cent to ₹101 crore, (₹98 crore) while revenue increased 2 per cent to ₹1374 crore (₹ 1351 crore). EBITDA was flat at ₹212 crore.

During the year, company opened 6 new stores with a total area of 43,896 sq ft and one of the stores at Khammam was upgraded to Varamahalakshmi format, which takes the total retail space to 6.47 lakhs sq ft. Two stores were opened in Coimbatore and other stores were opened in Hosur, Poonamallee in Chennai, Khammam and Salem. This is in line with company’s strategy to expand in Chennai and Tamil Nadu market.

Bharadwaj Rachamadugu, Sr. Vice President, Sai Silks Kalamandir said despite several market adversities in consumer markets, the company has delivered a marginal growth in revenues and profit during the year.

“Our endeavour to grow in Chennai and Tamil Nadu market has been very encouraging as of now we have expanded to 9 stores with almost 63,000 sq.ft. space. We will further expand in these markets and would like to replicate the success we had achieved in other leading southern states such as Andhra Pradesh, Telangana and Karnataka,” he said.

Once business gains sizeable scale, the company will establish large warehousing facilities to cater to Chennai and the rest of Tamil Nadu to bring in efficiencies in stock management and optimise cost to reap operational benefit, he said. The company’s highly concentrated cluster based expansion approach is paying off well and deliver better margins, he added.

Shares of the company were down 0.60 per cent at ₹173 at 12 noon on Monday.

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