Shares of textile company Siyaram Silk Mills surged on November 4 after the company reported strong growth in revenue, operating profit and net profit for the quarter that ended September 2022.

Compared to the same period last year (YoY), the company’s revenue rose 32%, EBITDA increased 41%, and profit after tax rose 52%.

“The company witnessed an overall improvement in its Q2FY23 performance due to improved operational efficiency, product mix optimisation and rationalisation of marketing plans,” Siyaram said in a release.

The statement added that domestic market demand remained strong as export markets became more attractive. The company continues to work hard to expand revenue in both areas.

The stock rose 16% to Rs 549 after the earnings report. The company said revenue from its fabric business in the first half of the fiscal year rose 30% year-on-year. In the first half of fiscal 2023, fabric’s share of total revenue increased to 70% from 77% a year ago. The growth was driven by a strong recovery in demand in tier-II and tier-III cities, leading to an increase in pent-up demand.

“The apparel segment has been performing strongly. It continues to focus on tier-II and tier-III cities and position itself among aspiring Indians, making the brand more accessible and acceptable to the masses,” said Ramesh Poddar, chairman and managing director of Siyaram Silk Mills.”

“The company’s strategic decision to reduce quarter-end sales has improved profitability. In addition to being profitable, it has delivered solid earnings. Overall, the medium- to long-term growth opportunities are encouraging, and we expect demand to remain buoyant this fiscal year.” Siyaram Silk Mills’ fabric business brands include Siyaram, J Hampstead and CADINI.