Indo Count Industries Limited · NSE:ICIL
Indo Count Industries — Q4 FY2023 Earnings Presentation
42 slides from Indo Count Industries's earnings presentation, May 30, 2023
Slide 1: Exchange filing cover letter for Investor Presentation Q4 & FY23
May 30, 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. : 521016 S
Slide 2: Indo Count Industries Ltd. Q4 & FY23 Investor Presentation
INDO COUNT INDUSTRIES LTD. Q4 & 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 company has demonstrated sustained performance despite challenging global macro environment. With capacities in place, we have built a solid foundation and are confident of growing our market share. We
Slide 5: Key Highlights – FY23
KEY HIGHLIGHTS – FY23 Sequential Vol Performance Capacity Creation FY24: Volume Guidance of (Mn. Mtrs.) 85-90 Mn. Mtrs. 74.7 Mn. Mtrs.* 20.5* 20.4* a) Bhilad unit integration completed 85-90* 19.1* Achieved FY23 b) Brownfield expansion of 90 Mn metres to 108 74.7* Vol Guidance 14.7* Mn metres comple
Slide 6: Prudent Capital Allocation: Future Ready to Achieve 2x Revenues
PRUDENT CAPITAL ALLOCATION FUTURE READY TO ACHIEVE 2x REVENUES 1 2 3 4 Capacity Debt Revenue Funding Creation Reduction Potential ❖ Investment of Rs.1,055 Crs. ❖ Over last 2 years we have ❖ Net debt has reduced ❖ Company is targeting has been funded through mix built capacities through from Rs. 900
Slide 7: Projects Executed in Last 2 Years
PROJECTS EXECUTED IN LAST 2 YEARS Spent till S.N Particulars (Rs. Crs) Status Cost Balance 31.03.23 1 Bhilad Unit Acquisition Completed # 593 593 - 2 Modernization of Gokul Shirgaon with Compact spinning technology 3 Brownfield of 90 mn metres to 108 mn metres Completed 231 215 - 4 Commensurate addi
Slide 8: Q4 & FY23 Consolidated Financial Highlights
Q4 & FY23 CONSOLIDATED FINANCIAL HIGHLIGHTS Volumes Total Income EBITDA & Margins PAT & Margins FY23* 74.7 Rs.486 Crs. Rs.277 Crs. Rs.3,043 Crs. Mn. Mtrs. 16.0% 9.1% Q4FY23* 20.4 Rs.147 Crs. Rs.95 Crs. Mn. Mtrs. Rs.810 Crs. 18.1% 11.7% 7 * Includes Bhilad Unit
Slide 9: Challenges in FY23
CHALLENGES IN FY23 Mismatch of supply in High inflationary High & Unusual retail ecosystem environment Cotton prices Increased transit time and untimely Inflationary environment in US and Cotton prices increased supply mismatch in the retail ecosystem other key markets impacted substantially, result
Slide 10: Our Journey of Resilience & Growth
OUR JOURNEY OF RESILIENCE & GROWTH ICIL established Acquired Bed Linen Enhanced capacity to ▪ With Bhilad unit acquisition Total Bed Linen Commencement of Pranavaditya capacity 90 mn meters Capacity increased to 153 Mn meters Spinning Operations Spinning Mills increased to Launched brand ▪ Brownfiel
Slide 11: 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 12: Consistent Performance
CONSISTENT PERFORMANCE 2,932 3,043 524 359 486 2,557 415 277 2,135 249 1,945 238 192 60 73 FY19 FY20 FY21 FY22^ FY23 FY19 FY20 FY21 FY22^ FY23 FY19 FY20 FY21 FY22^^ FY23 Total Income (Rs. Crs.) EBITDA (Rs. Crs.) PAT (Rs. Crs.) 0.57 22.3% 22.5% 21.3% 19.4% 16.7% 17.7% 15.4% 0.33 0.28 10.8% 0.24 0.18
Slide 13: Q4 & FY23 Consolidated Profit & Loss Statement
Q4 & FY23 CONSOLIDATED PROFIT & LOSS STATEMENT Particulars (Rs. Crs.) Q4FY23^ Q4FY22 FY23^ FY22 Total Income 810 690 3,043 2,932* EBITDA 147 132 486 524 EBITDA Margin (%) 18.1% 19.1% 16.0% 17.9% Depreciation 16 11 65 41 Finance Cost 7 8 62 47 PBT 123 113 359 436 Tax 29 28 82 127 PAT 95 85 277 359**
Slide 14: FY23 Consolidated Balance Sheet Statement
FY23 CONSOLIDATED BALANCE SHEET STATEMENT ASSETS (Rs. Crs.) Mar-23 Mar-22 EQUITY AND LIABILITIES (Rs. Crs.) Mar-23 Mar-22 Non-Current Assets Equity Property, Plant & equipment 1,039 594 Equity Share Capital 40 39 Capital Work in progress 180 21 Other Equity 1,753 1,551 Right of Use 57 34 Non-Control
Slide 15: FY23 Consolidated Cash Flow Statement
FY23 CONSOLIDATED CASH FLOW STATEMENT Particulars (Rs. Crs.) FY23 FY22 Profit before Tax & Exceptional 359 486 Adjustment for Depreciation & other items 105 102 Operating profit before working capital changes 464 588 Changes in working capital 391 -484 Cash generated from operations 855 104 Direct t
Slide 16: Consistent Reward to Shareholders
CONSISTENT REWARD TO SHAREHOLDERS Higher Dividend Payout Ratio 100% 100% Dividend Payout 75% 30% 20% FY19 FY20 FY21 FY22 FY23 Particulars (in Rs) FY19 FY20 FY21 FY22 FY23 Dividend / Share 0.40 0.60 1.50 2.00 2.00 The Board has recommended a Final Dividend of Rs. 2 per equity share (i.e. 100%) of Rs.
Slide 17: Industry Overview
INDUSTRY OVERVIEW
Slide 18: 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 11.0% 12.1% 8.3% 12.1% 12.6% 10.4% 12.2% 13.5% 16.9% 11.9% 12.4% 13.1% 14.5% 14.1% 16.1% 20.0% 21.6% 18.1% 43.4% 24.0% 17.2% 20.1% 48.1% 41.2% 57.7%
Slide 19: Total Retail Sales in USA
TOTAL RETAIL SALES IN USA Annual Retail Sales and Sales Growth Source: nrf.com 14.4% NRF Forecast 7.6% 7.0% 4%- 6% 4.1% 4.3% 3.3% 3.5% 3.5% 2.9% 2.9% $ 5.13T- $ 3. 75T $ 4.03T $ 4.61T $ 4.94T $ 3.03T $ 3.15T $ 3. 26T $ 3. 35T $ 3. 47T $ 3. 62T $ 5.23T 2013 2014 2015 2016 2017 2018 2019 2020 2021 202
Slide 20: Retail Ecommerce Sales in US
RETAIL ECOMMERCE SALES IN US Online penetration of US retail sales remains elevated from pandemic-fueled changes in shopping behaviour Ecommerce's share of total retail sales by quarter (Q1FY19 – Q1FY23) 22.7% 22.2% 22.7% 21.3% 21.2% 21.0% 21.7% 20.2% 20.4% 20.0% 20.6% 20.6% 17.3% 16.6% 14.6% 14.3%
Slide 21: 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 22: Advantage India: China + 1 Strategy
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 23: Company Overview
gt . SULANE KASLEN TIMELESS STILE ( \4 aa f 9 ~at' COMPANY OVERVIEW.
Slide 24: 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 25: 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 26: 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 27: Overview of B2C & D2C
OVERVIEW OF B2C & D2C
Slide 28: 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 FY23 10% of Revenue FY23 2.5% of Revenue Shift from Ambitious 5 Yea
Slide 29: Promotions and Events During the Quarter - Layers & Boutique Living
PROMOTIONS AND EVENTS DURING THE QUARTER - LAYERS & BOUTIQUE LIVING BOUTIQUE LIVING - World Sleep Day EVENT – ‘Karenge Poore, Sapne Adhoore’ On the 19th of January 2023, Indo Count brought smiles to many aspiring kids by making their dreams come true ❖ World Sleep Day is an annual event celebrated o
Slide 30: Promotions and Events During the Quarter - Layers & Boutique Living
PROMOTIONS AND EVENTS DURING THE QUARTER - LAYERS & BOUTIQUE LIVING Digital Campaigns Holi World sleep day Women’s Day Print Coverage 29
Slide 31: 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 32: Jasper Conran Collection
JASPER CONRAN COLLECTION 31
Slide 33: 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 32
Slide 34: Sustainability Is in Our DNA
SUSTAINABILITY IS IN OUR DNA
Slide 35: Sustainability Initiatives
SUSTAINABLITY INITIATIVES Member at UNITED NATIONS GLOBAL COMPACT CEO study on Sustainability for 2022 Our Scientific approach to climate action - JOINING SBTI Indo Count is a member at United Nations Global Compact and the Company is committed to integrating UNGC’s Principles into the organizationa
Slide 36: 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 37: Sustainable Raw Material Sourcing Initiatives
SUSTAINABLE RAW MATERIAL SOURCING INITIATIVES Gagan Avani Anant Total No. of Farmers Covered 50,000+ • Project Gagan aims to • Project Avani was • Project Anant is a employ long-lasting created to promote collaboration with CITI- alternatives to current sustainable social CDRA. Many of the agricultu
Slide 38: ESG Initiatives
ESG INITIATIVES Environmental The Way Ahead • Installed renewable energy and adding Renewable Electricity • Recycling and reuse of water through modernized ETP plant GHG Emissions • Conservation of water resources Reduce Scope 1 & Scope 2 GHG • Reduction in the use of plastic & Recycling of plastic
Slide 39: CSR Initiatives
CSR INITIATIVES 1 2 Education Healthcare-2 We provide improved We facilitate free health check-ups in 100 remote area infrastructure; support 130+ villages/slum areas by providing preventive and schools, educate the specially-abled curative healthcare programs, where we have treated and facilitate t
Slide 40: Awards & Recognition
Complete Comfort AWARDS & RECOGNITION
Slide 41: Awards & Recognition
AWARDS & RECOGNITION FEMINA POWER BRANDS 2022-23: LAYERS HIGHEST FOREIGN EXCHANGE EARNER IN MAHARASHTRA CITI BIRLA SUSTAINABILIY AWARD Our Domestic brand Layers ICIL has been awarded by the Our commitment towards sustainability has recognized as the FEMINA POWER Federation of Indian Export been rewa
Slide 42: 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. Manasi Bodas kklalpuria@indocount.com manasi.bodas@sgapl.net | +91 9821043510 M
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