Sai Silks (Kalamandir) Limited shares experienced their steepest decline since listing, falling over 12% on Monday following the release of underwhelming third-quarter business results. The stock emerged as the top loser on the BSE Smallcap index, marking the third consecutive day of losses for the textile retailer.

Q3 Performance Shows Revenue Decline

The company's exchange filing revealed disappointing quarterly performance metrics that triggered the sharp sell-off:

The December quarter turnover of ₹411.00 crore represented an 8% decline compared to the ₹449.00 crore reported during the same quarter in the previous year. However, the company's nine-month performance showed resilience with revenue growing 16% year-on-year to ₹1,235.00 crore from ₹1,063.00 crore during the corresponding period.

Expansion Activities Continue Despite Revenue Pressure

Despite the revenue challenges, Sai Silks maintained its expansion strategy during the quarter. The company opened five new retail outlets across different formats:

• One store under the Kanchipuram Varamahalakshmi Silks format
• Four stores under the Valli Silks format

This expansion demonstrates the company's commitment to growing its retail footprint even amid challenging market conditions.

Trading Activity and Stock Performance

Monday's trading session witnessed exceptional market activity for Sai Silks shares:

The 62 lakh shares traded represented the highest volumes in three months, with delivery volumes of 24.30 lakh shares significantly exceeding the 20-day average of 2.60 lakh shares. This elevated delivery activity suggests genuine selling pressure rather than speculative trading.

Stock Performance Since IPO

The textile retailer's stock performance has been challenging since its market debut. With Monday's decline, the stock has dropped 40% from its issue price of ₹222.00 per share. The majority of this decline occurred in recent months, as the stock had retested its IPO price levels in October of the previous year before the recent downturn began.

Monday's 12% fall marked the biggest single-day decline since the company's listing in September 2023, highlighting investor concerns about the company's near-term business prospects despite its ongoing expansion efforts.

Sai Silks (Kalamandir) has projected its third quarter turnover at ₹4.10 billion, compared to ₹4.50 billion achieved in the same quarter of the previous year. The retail company's latest projections indicate a year-on-year decline in revenue performance for the current quarter.

Q3 Turnover Projections

The company's turnover expectations reflect challenging market conditions, with the projected figures showing a notable decrease from the previous year's performance. The anticipated revenue represents a significant shift in the company's quarterly financial trajectory.

| Metric: | Q3 Current Year | Q3 Previous Year | Change || | ---: | :--- | :--- | :--- | | Turnover: | ₹4.10 billion | ₹4.50 billion | -₹0.40 billion | | YoY Change: | - | - | -8.89% |

Revenue Analysis

The projected turnover of ₹4.10 billion represents a decrease of ₹0.40 billion compared to the previous year's third quarter performance. This translates to an 8.89% year-on-year decline, indicating potential challenges in the retail sector or company-specific factors affecting sales performance.

The turnover projections provide insight into the current operating environment for the textile and retail industry. The anticipated decline may reflect broader market dynamics or operational adjustments within the company's business strategy during the quarter.