Saraswati Saree Depot Limited — Important, 12-11-2024: General Updates

**Financial Highlights:** For H1 FY25, Saraswati Saree Depot Limited (SSDL) reported revenues from operations at ₹295.12 Cr, marking a 13.89% increase year-on-year. EBITDA rose by 21.33% to ₹20.17 Cr, with an EBITDA margin of 6.83%. PAT also saw a significant rise of 29.9%, reaching ₹15.67 Cr, resulting in a PAT margin of 5.28%.

**Strategic Initiatives and Growth Drivers:** The company is set to invest ₹3.5 Cr in advanced machinery, which is expected to yield a return on capital employed of around 30%, enhancing production efficiency. Additionally, SSDL acquired a new purchase office in Surat, covering 25,000 sq. ft., aimed at optimizing procurement and reducing costs.

**Business Developments:** The joint venture in Ahmednagar is being further capitalized to unlock additional revenues.

**Market Position and Competitive Advantage:** With a 59% ROE and a strong presence in the saree wholesaling sector, SSDL is well-positioned to capture the growing organized market segment, projected to reach 32-37% of industry share by FY29.

**Investor Implications:** The positive trends in revenue growth, profitability, and strategic investments signal potential for sustained shareholder value creation moving forward. Investors should watch closely for the realization of efficiencies from new machinery and enhanced operations from the Surat facility.