Sai Silks (Kalamandir) (KALAMANDIR) Q2 24/25 earnings summary

Executive summary

• Q2 FY25 revenue reached ₹347.31 Cr, up 6.26% year-over-year, with gross margin improving to 42.17%.

• PAT for Q2 FY25 was ₹23.77 Cr, with total comprehensive income for H1 FY25 at ₹100.95 Cr.

• Operates 63 stores in 16-17 cities across 4 states, serving 6.91 million customers in FY24.

• Focus on innovative designs, technology-driven operations, and cluster-based expansion in South India.

• IPO completed in FY24, raising ₹1,201 Cr, with shares listed on BSE and NSE.

Financial highlights

• Q2 FY25 revenue: ₹347.31 Cr vs ₹326 Cr in Q2 FY24 (6.26% growth); H1 FY25 revenue: ₹614.61 Cr, down 2.67% YoY.

• Gross margin: 42.17% in Q2 FY25 vs 41.61% in Q2 FY24; H1 FY25 gross margin: 41.77% vs 40.97% in H1 FY24.

• Q2 FY25 EBITDA margin at 15.95% (vs 16.83% YoY); PAT margin at 6.85% (vs 7.15% YoY).

• Basic and diluted EPS for H1 FY25 was ₹1.92, compared to ₹1.61 in H1 FY24.

• Store-level EBITDA margin for Vara Mahalakshmi: 32%-34%; KLM: 23%-24%.

Outlook and guidance

• Optimistic for H2 FY25 due to more wedding dates and festive demand.

• Targeting 50,000 sq ft retail addition in H2 FY25, mainly in Vara Mahalakshmi format.

• FY26 guidance: ~800,000 sq ft retail area, with 10%-12% annual sq ft growth.

• No specific revenue or EBITDA guidance for FY25; more clarity expected after Q3.

• Focus on retail expansion and capital expenditure, with significant IPO proceeds allocated to new stores and warehouses.