Indo Count has a positive outlook for its home textiles business. Anil Kumar Jain, Executive Chairman, said, "We are seeing improving trend in the Home Textiles segment on back of improved performance by retailers across global markets. The growth forecasts for USA have been increased from 2.3% to 2.7% in 2018 and from 1.9% to 2.5% in 2019. We therefore expect recovery in consumption in the future.
Despite facing challenges on various fronts viz. strengthening of the rupee, volatility in cotton prices, changes in GST regime and incentive structures, we at Indo Count have performed satisfactory. With a focused approach in newer geographies, we continue to build a strong foundation and strengthen our brand."
Total revenue stood at Rs 460.0 crore for Q3FY 18 as against Rs 492.8 crore in Q2FY 18; degrowth of 6.6%. Revenue degrowth was mainly on account of rupee appreciation which was a major headwind, reduction in export incentives due to implementation of GST and increased in-house consumption of yarn from the spinning segment.
The company clocked sales volume of 14.3 million meters in Q3FY18; similar to Q2FY18. Revenue for 9MFY18 is Rs 1,384.6 crore as against Rs 1,571.9 crore in 9MFY17.
The company reported an EBIDTA of Rs 69.3 crore for Q3FY18 as against Rs 71.1 crores in Q2 FY18. EBITDA in absolute terms degrew by 2.5% whereas EBITDA margin expanded by 64 bps to 15.1% on Q-o-Q basis. The EBITDA for 9MFY18 is Rs 205.8 crore with an EBITDA margin of 14.9%.
Profit after Tax
Profit after tax for Q3FY18 is Rs 36.4 crore as against Rs 35.9 crore in Q2FY18; growth of 1.4% . PAT margin expanded by 63bps to 7.9% on Q-o-Q basis. Profit after tax for 9MFY18 is Rs 104.3 crore with margin 7.5%.
The phase II capex project is under progress and is likely to complete by March 2019. Indo Count is witnessing a positive acceptance in domestic brands, designs and promotions.
As on 1st February 2018, Boutique Living is now present across 444 stores in India including Multi Brand Outlets (MBOs) and Large Format Stores (LFS). The brand has expanded its footprints to 96 cities and present across 21 states.
New Brand Launched in USA
The company has launched a new brand named "Heirlooms of India" in USA during the quarter. ICIL had introduced three lifestyle brands "Boutique Living", "Revival" and "The Pure Collection" in 2016 in the US market. Further three new brands viz Sanderson, Harlequin and Scion, licensed through Walker Greenbank PLC UK, having strong presence in UK & Australia were introduced in North America. It also forayed into the Indian market with the launch of its domestic B2B brand "Boutique Living" in October 2016.
ICIL is second largest manufacturer and exporter of bed linen from India; amongst the top three bed sheet suppliers in USA and eleventh largest global home textiles supplier to USA. ICIL has a strong global clientele and exports to more than 54 countries.
Major revenues are derived from USA, the company's largest market; its other prominent markets comprise UK, Canada, Europe, MENA & Australia.