Indo Count’s PAT for 9M FY22 at all-time high; EBITDA up 43%

With the growing demand environment, the next leg of growth will be driven by brownfield capacity expansion of 18 million metres at the current Kolhapur facility and greenfield capacity addition of 45 million metres at the Vapi plant acquired from GHCL.

Indo Count Industries Ltd (ICIL), one of India’s largest home textile manufacturers, has reported 43% growth in EBITDA in the first 9 months of 2021-22 (9M FY22) at Rs 442 crore compared with Rs 309 crore in 9M FY21.

Commenting on the results, Anil Kumar Jain, Executive Chairman, Indo Count Industries, 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

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 ICIL’s key geographies like US, UK and Europe, the company is 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 the China Plus One strategy, the US prohibition on Xinjiang cotton, and government steps to support the Indian home textile export market. Q3FY22 sales volume at 21.1 million 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 approximately Rs 3,000 crore on an overall basis,” said Indo Count Industries in a press release.

ICIL is 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. It is focusing 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.

Additional capacity to drive next leg of growth

With the growing demand environment, the next leg of growth will be driven by brownfield capacity expansion of 18 million metres at the current Kolhapur facility and greenfield capacity addition of 45 million metres at the Vapi plant acquired from GHCL.

Capacity Addition

With addition of almost 50% new capacity (due to acquisition of GHCL’s Home Textile business), Indo Count has become 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, is leading to gain in global market share. It is de-risking manufacturing facilities with twin state geographical diversity. The company expects addition of Rs 1,300-1,500 crores per annum to its top line over a period.

Indo Count Industries Ltd is one of India’s largest home textile manufacturers. Anil Kumar Jain, Executive Chairman, ICIL, has been ranked 10th amongst the India’s Best Top 100 CEO’s 2017 by Business Today. Under his leadership, the company has focused on some of the world’s finest fashion, institutional and utility bedding & sheets and has built significant presence across the globe. Over the years, ICIL has successfully carved out a niche for itself and has become a total bedding resource. The company’s current annual capacity is 90 million metres.