Indo Count Industries Limited · NSE:ICIL
Indo Count Industries — Q3 FY23 Earnings Presentation
41 slides from Indo Count Industries's earnings presentation, Feb 6, 2023
Slide 1: Exchange filing cover letter
February 06, 2023 National Stock Exchange of India Ltd. BSE Limited Listing Department Department of Corporate Services Exchange Plaza, Floor 25, Phiroze Jeejeebhoy Towers, Bandra Kurla Complex, Bandra (East), Dalal Street, Mumbai – 400 051 Mumbai – 400 001 Company Symbol : ICIL Scrip Code No. : 521
Slide 2: Indo Count Industries Ltd. Q3 & 9M FY23 Investor Presentation
INDO COUNT INDUSTRIES LTD. Q3 & 9M FY23 INVESTOR PRESENTATION
Slide 3: Safe Harbour
SAFE HARBOUR This presentation and the accompanying slides (the “Presentation”), which have been prepared by Indo Count Industries Ltd. (the “Company”), have been prepared solely for information purposes and do not constitute any offer, recommendation or invitation to purchase or subscribe for any s
Slide 4: Chairman's Message
CHAIRMAN’S MESSAGE Commenting on the results, Mr. Anil Kumar Jain - Executive Chairman said, “The quarter gone by has been challenging for us and the industry. Rising inflation in our key markets and the steep hike in the interest rates by the central banks, as a counter measure, impacted consumers'
Slide 5: Sales Volume Performance
SALES VOLUME PERFORMANCE in million meters 9M Performance QoQ Performance Annual Performance FY23 Volume Guidance: 58.1 20.5* 78.2 73-75* 54.3* 19.1* 75.8 63.0 14.7* 9MFY22 9MFY23 Q1FY23 Q2FY23 Q3FY23 FY20 FY21 FY22 FY23E ➢ CY2022 ended on a muted note amidst uncertain economic backdrop and cautious
Slide 6: Consolidated Financial Highlights
CONSOLIDATED FINANCIAL HIGHLIGHTS Volumes Total Income EBITDA & Margins PAT & Margins 54.3 Rs. 2,233 Crs Rs. 339 Crs Rs. 182 Crs Mn Mtrs 9MFY23* Margin 15.2% Margin 8.2% 14.7 Rs. 38 Crs Rs. 662 Crs Rs. 78 Crs Q3FY23* Mn Mtrs Margin 11.8% Margin 5.7% 5 * Includes Bhilad Unit
Slide 7: Long Term Story Remains Intact
LONG TERM STORY REMAINS INTACT • FTAs to create demand for Indian Home textile industry • Various government initiatives to support Indian textile sector • Stabilising cotton prices, reduction in freight cost will provide support We are market ready for the upcoming opportunity in the textile indust
Slide 8: Q3 & 9MFY23 Consolidated Profit & Loss Statement
Q3 & 9MFY23 CONSOLIDATED PROFIT & LOSS STATEMENT Particulars (Rs. Crs) Q3FY23^ Q3FY22 YoY% 9MFY23^ 9MFY22 YoY% Total Income 662 787 -16% 2,233 2,242* -0.4% EBITDA 78 146 -47% 339 392 -14% EBITDA Margin (%) 11.8% 18.6% -677 bps 15.2% 17.5% -232 bps Depreciation 16 10 48 30 Finance Cost 20 15 55 39 PB
Slide 9: Status of Rs. 200 Crs Capex Announced in March 2021
STATUS OF RS. 200 CRS CAPEX ANNOUNCED IN MARCH 2021 No. Project description Status Amount Est. Revised Est. Amount spent Rs. Crores 31st Dec 2022 Modernization of Gokul Shirgaon spinning capacity 1. Completed 50.00 44.00 43.71 with Compact spinning technology Completed and ready but will be Increase
Slide 10: Additional Spinning Capacity at PSML: Capex of ~Rs. 270 Crores
ADDITIONAL SPINNING CAPACITY AT PSML: CAPEX OF ~RS. 270 CRORES ▪ Proposed capex towards additional spinning capacity at Pranavaditya Spinning Mills with a total spindlage capacity of ~68,000 spindles RATIONALE ▪ Plan to spin specialised yarn Total capex of ~RS. 270 Crs PHASE 1 PHASE 2 COST OF THE PR
Slide 11: Status of Rs. 270 Crs Capex at Pranavaditya Spinning Mills
STATUS OF RS. 270 CRS CAPEX ON MODERNISATION AND ADDITION OF SPINNING CAPACITY AT PRANAVADITYA SPINNING MILLS No. Project Description Status Amount Est. Amount spent Rs. Crores 31st Dec, 2022 Phase I 1. Modernization of spinning capacity with Compact Already Operational 100.00 94.40 spinning technol
Slide 12: Our Journey
OUR JOURNEY 4 Years CAGR Revenue Growth of 15% Recurrence of pandemic's second and third wave, impacting the EBITDA growth of 51% overall demand environment PAT growth of 82% Avg. ROCE of 18.9% Delivered despite logistic & supply Avg. ROE of 15.3% chain issues, high cotton prices and Delivered growt
Slide 13: Leadership Position
LEADERSHIP POSITION Our strategy of being a ‘Resilient’ and ‘Agile’ organisation has taken us to a leadership position Focused business approach Our extensive product portfolio Growing into a stronger Trusted and Innovative aids in better understanding assists us in providing customers corporate hou
Slide 14: Industry Overview
INDUSTRY OVERVIEW irae
Slide 15: USA Home Textiles Market Dynamics
USA HOME TEXTILES MARKET DYNAMICS US imports of Cotton Sheets US imports of Cotton Pillow cases US imports of Cotton Bedspread ROW China Pakistan India 14.0% 11.0% 12.4% 14.0% 12.1% 12.8% 10.7% 12.2% 13.4% 14.0% 12.0% 14.2% 14.1% 16.0% 15.7% 20.0% 17.2% 51.9% 48.1% 43.5% 20.0% 24.1% 16.0% 20.4% 19.7
Slide 16: US Holiday Sales
US HOLIDAY SALES Holiday Sales ($ in billion) $936.3 $889.3 Source: NRF based on U.S. Census Bureau data $783.4 $691.8 $716.7 $646.7 $678.8 $611.2 $628.1 $553.3 $567.6 $583.3 $528.8 13.5% 5.3% 9.3% 5.0% 1.9% 3.6% 4.8% 2.8% 3.0% 5.2% 4.6% 2.6% 2.8% 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 20
Slide 17: Retail Ecommerce Sales in US
RETAIL ECOMMERCE SALES IN US Total Retail sales Online penetration of US retail sales remains elevated +7.7% Ecommerce's share of total retail sales by quarter (Q3FY19 - Q3FY22) $1,222.6 22.7% 22.2% $1,134.9 21.3% 21.2% 21.0% 20.6% 20.6% 20.2% 20.4% 20.0% 17.3% 16.6% 15.0% 32.4% Q3 2021 Q3 2022 Q3 2
Slide 18: Home Textile Market Scenario
HOME TEXTILE MARKET SCENARIO Global Home textile market is expected to reach $60bn by 2025 Major exports markets for home textiles (in $ Bn) 60 51 ROW US 35% 31% Europe 34% 2020 2025E Source - Industry, various reports Source - Global Cotton Outlook Domestic Home Textile Market Scenario 13 (in $ Bn)
Slide 19: Advantage India
ADVANTAGE INDIA CHINA + 1 STRATEGY ▪ ‘China Plus One’ has led to several western countries looking at alternate markets FREE TRADE AGREEMENT GOVERNMENT INITIATIVES ▪ Recently, Government of India executed ▪ Governments initiatives such as Atmanirbhar FTAs with Australia and UAE 01 Bharat, PLI scheme
Slide 20: Company Overview
| COMPANY OVERVIEW
Slide 21: About Us
ABOUT US The Largest Global Home Textile Bed Linen Company Domestic Business B2C & D2C brands Comprehensive product portfolio in the premium segment that comprises of bed sheets, fashion bedding, utility bedding and institutional bedding Our Forte ESG Focused Biodiversity Business Ethics Solar / Win
Slide 22: Our Global Footprint
OUR GLOBAL FOOTPRINT SERVICES (WORLD OVER) ▪ Product Development 10,000+ Employees UK ▪ EDI-based replenishment (Direct/Indirect) services USA ▪ Market Research UAE ▪ Total Supply Chain INDIA Solutions Corporate Office - Mumbai ▪ Inventory Planning • Showroom, Warehouse, E-com Manufacturing Plants -
Slide 23: Expanded Market Opportunity with Foray into Newer Products
EXPANDED MARKET OPPORTUNITY WITH FORAY INTO NEWER PRODUCTS Bed Sheets Fashion Bedding Utility Bedding Institutional Bedding Flat Sheet Comforters & Duvets Mattress Pads, Basic white sheets Fitted Sheets Shams & Decorative Protectors, Pillows Shams & Pillows Pillow-cases Pillows Quilts, Coverlets Dow
Slide 24: Overview of B2C & D2C Segment
OVERVIEW OVERVIEW OF B2C &OF D2CB2C & D2C SEGMENT SEGMENT
Slide 25: Promotions and Campaigns During the Quarter - Layers & Boutique Living
PROMOTIONS AND CAMPAIGNS DURING THE QUARTER - LAYERS & BOUTIQUE LIVING DIGITAL CAMPAIGNS CHILDREN’S DAY CONTEST WINTER COLLECTION CAMPAIGN ROCK & ROOM CAMPAIGN DURACOUNT - STATIC VISUAL MERCHANDISING 24
Slide 26: Licensed Brand Tie-ups
LICENSED BRAND TIE-UPS LAUNCHED HEALTH & WELLNESS GLOBAL BRAND - GAIAM PARTNERSHIP WITH A LICENSED BRAND, JASPER CONRAN an industry-leading health & wellness brand FOR AN EXCLUSIVE BED AND BATH COLLECTION, www.jasperconran.com/collections/home ✓ The GAIAM home collection will feature an extensive ✓
Slide 27: Jasper Conran Collection
JASPER CONRAN COLLECTION 26
Slide 28: Enhancing Domestic Presence Through Digital Marketplace
ENHANCING DOMESTIC PRESENCE THROUGH DIGITAL MARKETPLACE Through our own website and digital markets, we are expanding our omnichannel presence Our core brand promise is to address the need gaps in the consumers’ lifestyle by providing superior world-class products www.boutiquelivingindia.com 27
Slide 29: Our Brand Portfolio
OUR BRAND PORTFOLIO EXISTING PORTFOLIO ADDITION OF NEW BRANDS Focused digital presence in US, Europe, Middle-East and India E-commerce & Other Digital Domestic Business Channels FY22 7% of Revenue FY22 2% of Revenue Current focus on FY23E 8% of Revenue FY23E 3% + of Revenue Shift from Ambitious 5 Ye
Slide 30: Sustainability Is in Our DNA
SUSTAINABILITY IS INOUR DNA = SEEDERS
Slide 31: UN Global Compact India & Accenture CEO Study on Sustainability 2022
UNITED NATIONS GLOBAL COMPACT INDIA & ACCENTURE LED CEO STUDY ON SUSTAINABILITY FOR 2022 Indo Count Industries Ltd. participated in United Nations Global Compact India & ACCENTURE led CEO study on Sustainability for 2022 30
Slide 32: Indo Count Is a Member at United Nations Global Compact
INDO COUNT IS A MEMBER AT UNITED NATIONS GLOBAL COMPACT Indo Count is a member at United Nations Global Compact and the Company is committed to integrating UNGC’s Principles into the organizational culture and ensuring building a greener sustainable future We have developed a Business Plan 2030 whic
Slide 33: Our Scientific Approach to Climate Action - Joining SBTi
OUR SCIENTIFIC APPROACH TO CLIMATE ACTION - JOINING SBTI ▪ Indo Count has adopted a scientific approach in its journey for Climate action by joining global campaign led by SBTi (Science Based Target initiatives) ▪ Aligned with Paris agreement, targets for GHG emission reduction have been taken till
Slide 34: Sustainable Sourcing
SUSTAINABLE SOURCING Gagan Avani Anant • Project Gagan aims to implement • Project Avani was started to promote • Project Anant is for ELS (Extra Long long-lasting alternatives to current Organic Cotton, sustainable social Staple) Cotton agricultural practices infrastructure and support systems • Th
Slide 35: Sustainability Initiatives
SUSTAINABLITY INITIATIVES • Indo Count is determined to protect the planet and people by contributing to climate change reduction by adopting of more Dyes from Natural Waste Extract renewable energy resources. To foster our sustainable offerings, we are • ICIL maintained CDP performance on one of th
Slide 36: ESG Initiatives
ESG INITIATIVES Environmental The Way Ahead • Installed renewable energy and adding Renewable Electricity • Recycling and reuse of water through modernized ETP plant • Conservation of water resources GHG Emissions • Reduction in the use of plastic & Recycling of plastic waste Reduce Scope 1 & Scope
Slide 37: CSR Initiatives
CSR INITIATIVES 1 2 Water and Sanitation Healthcare We provide clean drinking water We facilitate free health check-ups in 100 remote area through water purifiers and RO villages/slum areas by providing preventive and systems that have benefitted curative healthcare programs, where we have treated 1
Slide 38: Awards & Recognition
AWARDS & RECOGNITION ae fe
Slide 39: Awards & Recognition
AWARDS & RECOGNITION ECONOMIC TIMES BEST BRAND 2022 – BOUTIQUE LIVING Our domestic brand Boutique Living has received Best Brand Award 2022 by The Economic Times at the 5th edition of "The Economic Times Best Brands 2022 Conclave". At the award ceremony, the Olympic Tennis player Leander Paes presen
Slide 40: Awards & Recognition
AWARDS & RECOGNITION Chairman, Shri. Anil Kumar ICIL has been awarded Boutique Living has been chosen Received Export Award in Jain, has been conferred “Winner” in “Within the by the Editorial Board of GOLD Category at the with the “Mahatma Award Fence” category in CII’s exchange4media and impactonn
Slide 41: Contact Us
CONTACT US Company : Investor Relations Advisors : Indo Count Industries Limited Strategic Growth Advisors Pvt. Ltd. CIN: L72200PN1988PLC068972 CIN: U74140MH2010PTC204285 Mr. K.R. Lalpuria, Executive Director & C.E.O Ms. Shikha Puri kklalpuria@indocount.com shikha.puri@sgapl.net | +91 9819282743 Mr.
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