Indo Count Industries, a leading global home textile bed linen company, experienced a significant surge in its shares, reaching a fresh 52-week high of Rs 302.05 on the Bombay Stock Exchange (BSE) during Tuesday’s intra-day trade. This remarkable uptick was fueled by the company’s exceptional financial performance in the September quarter, marking a new milestone in its market trajectory.
Indo Count Industries reported impressive financial results, achieving its highest-ever quarterly revenue, volumes, and EBITDA (earnings before interest, taxes, depreciation, and amortization). The company’s total revenue surpassed the Rs 1,000 crore mark for the first time in its history, reflecting a substantial 22% year-on-year increase, reaching Rs 1,033 crore during the quarter. Sales volumes also experienced robust growth, soaring by 23% year-on-year to 28.7 million meters. Notably, the company’s EBITDA witnessed a remarkable 58% YoY increase, totaling Rs 189 crore, accompanied by improved margins, rising from 14.1% to 18.3%, showcasing a 420 basis point increase from the previous year. This outstanding performance was attributed to higher volumes and efficient cost management, enhancing operating leverage. Additionally, the profit after tax surged impressively by 70% YoY, reaching Rs 114 crore.
Indo Count Industries has set ambitious targets for the future. The company revised its FY24 volume guidance to a range of 90-100 million meters, coupled with a margin guidance of 16% to 18%. Indo Count’s strategic focus includes expansion into value-added segments such as fashion bedding, utility bedding, and institutional bedding, positioning itself for sustainable growth in the market.
Indo Count Industries, ranked among the top three global bedsheet suppliers in the US, is eyeing expansion in the global market. The company emphasized the significance of the “China Plus One” strategy, which has prompted several Western countries to explore alternative markets. Moreover, the Indian government’s initiatives, including “Atmanirbhar Bharat,” production-linked incentive (PLI) schemes, and the establishment of textile parks, have been instrumental in supporting Indian textile players. The government has also initiated free trade agreements (FTAs) with countries like Australia and the UAE, with ongoing negotiations for FTAs with the UK, Canada, EU, and GCC countries. These initiatives are anticipated to open new opportunities for Indian home textile exports, creating a level playing field for Indo Count Industries.
