Indo Count is in focus on the back of its strong quarterly numbers. Profit for quarter rose and margins too saw a big improvement. The year-on-year revenues for the company were up at Rs 714 crore compared to Rs 331.8 crore and EBITDA margins came in at 18.6 percent versus 10.5 percent. Net profit came in at Rs 117.4 crore compared to Rs 18 crore for the same quarter last fiscal.
Throwing more light on the quarterly performance and the demand outlook, Kailash Lalpuria, ED & CEO, Indo Count Industries, said demand has picked up because home has become the centre stage of our life and lifestyle. “Our largest market, the US is doing pretty well and their economy is booming. With US booming, the other markets are also picking up post-Covid. There will be good demand for home textile and India is well-positioned in the textile sector,” he said, adding that the company with their raw materials, capital adequacy, supply chain and traditional labour force will be able to ramp up its capacity to meet the demand.
“With FTAs getting signed in EU, UK and Canada and with China unable to supply cotton are big positive factors, which will improve the demand further. So the company will do extremely well going forward, and as it is also well positioned with marquee customers and big product portfolio from end-to-end bedding solution,” said Lalpuria in an interview with CNBC-TV18.
Moreover, he added, “We are a focused company, debt-free and so we can invest our internal accruals into capex. The capex which we are investing in will bring in around Rs 600 crore revenues in two years. Going forward, we have given a guidance of 85-90 million metres for FY22, I think the market is out there for Indian textile to perform better.”
On the margin front, he said, “In our Q4 concall we had given that 15-17 percent margins are sustainable and because of Rebate of State and Central Taxes and Levies (RoSCTL) Scheme - the refund on taxes, we are going to get 18-20 percent margins in FY22, so there is expansion in margins. We are also going to expand our fashion wedding, utility wedding, which is a high-value product and we are also entering into health, hygiene and wellness products which will bring in value addition. We are doing B2C and D2C ventures.”
“So with our complete product portfolio and our investments in marketing, distribution and branding and also in necessary capex to serve our customers better, we see margin expansion, going forward,” mentioned Lalpuria.
For the entire interview, watch the accompanying video