Sai Silks (Kalamandir) Limited , a prominent player in the Indian textile and retail sector, has announced its financial results for the fourth quarter and full fiscal year 2024-25, showcasing growth amidst regulatory challenges.

Q4 and FY25 Financial Highlights

Sai Silks (Kalamandir) reported a robust performance in the fourth quarter of fiscal year 2025:

For the full fiscal year 2024-25, the company achieved:

This steady increase in annual revenue underscores the company's consistent performance and market expansion strategies.

Expansion and Store Count

During Q4 FY25, Sai Silks (Kalamandir) continued its expansion strategy by opening two new stores under the brand 'Kanchipuram Varamahalakshmi Silks':

1. Trichy, Tiruchurapalli, Tamil Nadu:

   • Opened: January 10, 2025
   • Area: 8,717 sq. ft.

2. Tumakuru, Karnataka:

   • Launched: March 19, 2025
   • Area: 6,600 sq. ft.

With these additions, the company's total store count reached 68 as of March 31, 2025, covering a total retail space of 7,00,928 sq. ft.

Regulatory Challenges

Sai Silks (Kalamandir) disclosed tax demand notices from the Office of the Deputy Commissioner of Income Tax, dated March 31, 2025:

The company stated that while these tax demands may impact cash flows, they do not anticipate any material effect on business operations.

Impact on Promoters

The regulatory scrutiny has extended to the company's promoters:

1. Mr. Nagakanaka Durga Prasad Chalavadi:

   • Tax demand: ₹58.33 crores (FY 2019-20 to FY 2022-23)
   • Status: Appeal filed challenging the orders

2. Ms. Jhansirani Chalavadi:

   • Tax demand: ₹1.43 lakhs (FY 2019-20 to FY 2022-23)

The company has clarified that these personal liabilities of the promoters will not impact Sai Silks (Kalamandir)'s financial position.

Looking Ahead

Despite the regulatory challenges, Sai Silks (Kalamandir)'s strong Q4 performance and overall growth in FY25 demonstrate the company's resilience. As the textile and retail sectors continue to evolve, investors and industry observers will be keenly watching how the company navigates these financial and regulatory waters while maintaining its growth trajectory.

Sai Silks (Kalamandir) Limited , a prominent player in the Indian textile and retail sector, has announced its financial results for the fourth quarter of fiscal year 2025, along with significant regulatory updates. The company has demonstrated strong growth despite facing tax-related challenges.

Q4 FY25 Financial Highlights

Sai Silks (Kalamandir) reported a robust performance in the fourth quarter of fiscal year 2025:

• Turnover reached ₹399.00 crores, marking an 11.00% increase compared to ₹359.00 crores in Q4 FY24.
• The company achieved a year-on-year growth of 6.43%, with FY25 turnover standing at ₹1,462.00 crores against ₹1,374.00 crores in FY24.

Expansion and Store Count

The company continues to expand its retail footprint:

• Two new stores were opened under the brand "Kanchipuram Varamahalakshmi Silks":
  • Trichy, Tiruchurapalli, Tamil Nadu: 8,717 sq. ft. (opened on January 10, 2025)
  • Tumakuru, Karnataka: 6,600 sq. ft. (opened on March 19, 2025)
• Total store count reached 68 as of March 31, 2025
• Cumulative retail space now stands at 7,00,928 sq. ft.

Tax Demand Notices

Sai Silks (Kalamandir) has disclosed receiving tax demand notices from the Office of the Deputy Commissioner of Income Tax:

• The demands are related to disallowances of certain expenditures and purchases.
• The company states that while there may be no material impact on business operations, cash flows could be affected to the extent of the tax demand amount.

Promoter Tax Issues

The company's promoters have also received tax demand notices:

Mr. Nagakanaka Durga Prasad Chalavadi

• Tax demands of ₹58.33 crores for FY 2019-20 to FY 2022-23
• Related to income from other sources
• An appeal has been filed challenging these orders

Ms. Jhansirani Chalavadi

• Tax demands of ₹1.43 lakhs for FY 2019-20 to FY 2022-23
• Related to disallowance of deductions under section 80D and others

The company has clarified that these promoter-related tax issues will not impact Sai Silks (Kalamandir) Limited, as they are personal liabilities.

Conclusion

Despite the tax-related challenges, Sai Silks (Kalamandir) continues to demonstrate growth in its core business, with expanding retail presence and improving quarterly performance. The company's ability to navigate these regulatory hurdles while maintaining its growth trajectory will be crucial for its future prospects in the competitive Indian textile and retail market.