Sai Silks (Kalamandir) Ltd

Building on our legacy, shaping the future

We believe that expanding into new geographies will have a long-term positive impact on our overall brand equity and customer base.

DEAR SHAREHOLDERS,

It gives me great pleasure to share the progress we have made and the strong foundation we've built at Sai Silks (Kalamandir) Limited, as well as our vision for continued growth in the year 2024-25.

The past year has been one of transformation and resilience.

While the first half was marked by depressed market conditions and muted consumer sentiment, we remained focused on our core strengths and responded with agility. Building on our foundation of trust, craftsmanship, and customer-centricity, we gained momentum in the latter half of the year. Our continued commitment to preserving India's rich textile heritage—while embracing contemporary design sensibilities—has strengthened our brand and deepened our connection with discerning customers across regions

As of March 31, 2025, our store count stands at 68 company-owned, company-operated outlets.

For the full year, we added nearly 67,414 sq. ft. of retail space, taking our total retail footprint to 716,088 sq. ft., spread across 20 cities in 5 states.

We continue to strengthen our presence in Tamil Nadu, with Varamahalakshmi Silks playing a central role in our expansion roadmap. In the upcoming year, we plan to further extend this format into other high-potential regions outside Tamil Nadu as well. We believe that expanding into new geographies will have a long-term positive impact on our overall brand equity and customer base.

In FY 2024-25, we acquired 18.5 lakh unique customers, reflecting the effectiveness assortment, and expanded retail footprint. Notably, 43% of these customers returned to make repeat purchases, underscoring the strength of our value proposition and the deep trust our brand has built over time. This high repeat engagement highlights our ability to not only attract new customers but also nurture long-term relationships, translating into sustained revenue streams and enhanced customer lifetime value. Our focus on personalised experiences, consistent product quality, and superior service continues to drive loyalty and reinforce our position as a preferred choice in the market.

For the full year ended March 2025, net profit declined 15.35% to INR 85.39 Crores compared to INR 100.87 Crores in the previous year, primarily due to a one-time income tax provision of INR 21 Crores related to prior years. Sales, however, rose 6.44% to INR 1,462.01 Crores from INR 1,373.55 Crores a year earlier. Gross margin improved to 41.8%, up from 40.6%, reflecting a healthy 110 basis point expansion.

Profit Before Tax remained broadly stable year over year, with the decline in Profit After Tax attributable to the exceptional tax adjustment.

We continue to enhance our merchandising strategy by studying store-level performance, analysing customer journeys, and adapting our product offerings based on location-specific preferences. Leveraging our ERP systems, we ensure that each store is curated with relevant assortments to maximise conversions and customer satisfaction.

While our business traditionally aligns with the wedding season calendar, we are actively diversifying our portfolio to reduce dependency on seasonality and drive more consistent growth throughout the year.

We also recognise the importance of responsible growth. Sustainability and inclusivity are integral to our vision. We continue to support the skilled artisans who bring our creations to life and are taking meaningful steps to reduce our environmental footprint across operations.

Looking ahead, we are confident that our strategic priorities innovation, operational excellence, and customer delight will drive consistent value for all stakeholders. As we evolve, our core purpose remains unchanged: Empowering individuals to celebrate life's moments through the timeless elegance of Indian sarees and ethnic wear.

With a well-spread wedding calendar in FY 2025-26, we remain highly optimistic about our growth prospects. We are also preparing to expand into India's largest ethnic wear markets, of our marketing initiatives, product moving beyond the five states we currently serve.

Our strategic focus, combined with technology-led decision-making, positions SSKL to unlock new opportunities and achieve greater milestones in the years ahead.

We remain deeply grateful to our shareholders for their trust and confidence in our capabilities. I extend my heartfelt appreciation to every stakeholder for your continued support and encouragement, which inspire us to reach new heights of success year after year. Guided by our strategic initiatives and our commitment to continuously explore innovative ways of delivering exceptional performance, we remain optimistic about a brighter future and even stronger prospects ahead.