Mumbai, February 7th, 2022 : Indo Count Industries Limited announced its un-audited financial results for the third quarter and nine months ended 31st December 2021
Commenting on the results, Mr. Anil Kumar Jain, Executive Chairman said, “During the quarter, despite inflationary pressures, the Company has been able to maintain the margin profile. We continue to work towards strengthening our positioning in key markets globally backed by innovative designs, products and additional capacities. While the short-term headwinds may persist, we continue to be positive on the growth opportunities for the Indian home textile industry on a long-term basis.”
Consolidated Financial Performance
| Particulars (Rs. In Crs) | Q3FY22 | Q3FY21 | YoY% | 9MFY22 | 9MFY21 | YoY% |
| Total Income | 787 | 792 | -1% | 2,292 | 1,852 | 24% |
| EBITDA | 146 | 143 | 2% | 442 | 309 | 43% |
| EBITDA Margin (%) | 18.6% | 18.0% | 60 bps | 19.3% | 16.7% | 260 bps |
- The industry has been witnessing headwinds related to shortages and unavailability of shipping containers, increase in freight costs and longer transit duration. The inflationary pressure on logistics and supply chain is likely to persist
- Since late November/December 2021, with the recurrence of third wave of pandemic across our key geographies like US, UK and Europe, we are witnessing lower demand. The intensity in the current month continues and that is reflected in the demand projections shared by our customers
- While there may be some short-term challenges, we remain positive about the demand scenario in the long run on the back of China + 1 strategy, the US prohibition on Xinjiang cotton, and government steps to support the Indian home textile export market
- Q3FY22 sales volume at 21.1 Mn meters and 9MFY22 sales volume at 58.1 Mn meters
- The current sales profile has seen a shift to better product mix, and we expect to achieve revenue guidance of approx. Rs. 3,000 Crs on an overall basis
Strengthening Product Mix
| % Contribution to Revenue | 9MFY22 | FY21 |
| Branded Business | 14% | 10% |
| Fashion/Utility/ Institutional | 19% | 15% |
| E-commerce business | 6% | 4% |
| India Home Textile Business | 2% | 1% |
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- Strongly moving towards B2C and D2C segment through high quality product offerings across varied price points, building visibility through digital campaigns and leveraging omni-channel & e-commerce distribution
- Focus on Brand Promotion in US, UK, Middle-East and India through 10 active brands
- Innovation and technological capabilities along with licensed brands, patents, trademarks will further strengthen brand offerings
- With the growing demand environment, the next leg of growth will be driven by:
o Brownfield capacity expansion of 18 million metres at the current Kolhapur facility
o Greenfield capacity addition of 45 million metres at the Vapi plant acquired from GHCL
- GHCL received shareholders’ approval for Transfer of Home Textile business of GHCL by the way of slump sale on a ‘going concern’ basis to Indo Count Industries Ltd.
- With addition of almost 50% new capacity, Indo Count becomes the largest Home Textile Bedding company, globally, with annual capacity of approximately 153 million meters
- Addition to a whole new avenue of customer base which is untapped, thereby leading to gain in global market share
- Leverage joint capabilities of Design, Innovation and Products to a wider spectrum of customers
- De-risking manufacturing facilities with twin state geographical diversity
- Potential addition of Rs.1300 – 1500 Crores p.a. to the top line of the Company over a period
