Indo Count Industries Limited · NSE:ICIL
Indo Count Industries — Q4 FY2022 Earnings Presentation
46 slides from Indo Count Industries's earnings presentation, May 29, 2022
Slide 1: Indo Count Industries Ltd
'.\1. lNno COUNT Complete Comfort May 29,2022 The National Stock Exchange of India Ltd. SSElimited 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 Sym
Slide 2: Indo Count Industries Limited Q4 & FY22 Investor Presentation
Indo Count Industries Limited Q4 & FY22 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, “We delivered growth despite covid-related impact, geopolitical disruptions, rising inflation, supply chain challenges, and peak raw material prices. During the year, we acquired the GHCL home textile busine
Slide 5: Company Performance
COMPANY PERFORMANCE
Slide 6: Achieved Volume, Value and Margin Guidance
ACHIEVED VOLUME, VALUE AND MARGIN GUIDANCE 75.8 Mn Mtrs Rs. 2,982 Crs Rs. 574 Crs Rs. 359 Crs -3% YoY 17% YoY 39% YoY 44% YoY VOLUMES REVENUE EBITDA PAT (Rs. Crs) 16.2% 19.3% 9.7% 12.0% 78.2 75.8 2,557 2,982 574 359 415 249 FY21 FY22 FY21 FY22 FY21 FY22 FY21 FY22 Margins Logistical and supply chai
Slide 7: We Have Delivered Growth in a Challenging Environment
WE HAVE DELIVERED GROWTH IN A CHALLENGING ENVIRONMENT Delivered despite logistic & supply Navigated through pandemic chain issues related challenges Industry headwinds related to Recurrence of pandemic's second and unavailability of shipping containers and third wave, impacting the overall increase
Slide 8: Creating Stronger Roots with the 'New Beginning'
CREATING STRONGER ROOTS WITH THE ‘‘NEW BEGINNING’’ Indo Count Industries Limited has successfully completed the acquisition of Home Textile business of GHCL Ltd. for an all-cash consideration of Rs. 593 crores With addition of almost 50% new capacity, Indo Count becomes the Largest Global Home Texti
Slide 9: Acquisition Synergies
ACQUISITION SYNERGIES Economies of Scale Leveraging joint capabilities • Flexibility in serving the customers • Well-developed design and • Overall competitiveness innovation capabilities will help in • More resilient organisation go to market strategy • Fulfill niche orders from branded • Gujarat f
Slide 10: 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 11: FY22 Consolidated Financial Performance
FY22 CONSOLIDATED FINANCIAL PERFORMANCE Particulars (Rs. Crs) FY22 FY21 YoY% Q4FY22 Q4FY21 YoY% Q3FY22 QoQ% Total Income 2,982 2,557 17% 690 705 -2% 787 -12% EBITDA 574 415 39% 132 106 25% 146 -10% EBITDA Margin (%) 19.3% 16.2% 305 bps 19.1% 15.0% 411 bps 18.6% 58 bps Depreciation 41 43 11 10 10 Fin
Slide 12: Consolidated Balance Sheet
CONSOLIDATED BALANCE SHEET ASSETS (Rs.Crs) 31-Mar-22 31-Mar-21 EQUITY AND LIABILITIES (Rs.Crs) 31-Mar-22 31-Mar-21 Non-Current Assets Equity Property, Plant & equipment 598 540 Equity Share Capital 39 39 Capital Work in progress 24 8 Other Equity 1,547 1,245 Right of use assets 29 18 Non Controlling
Slide 13: Consolidated Cash Flow Statement
CONSOLIDATED CASH FLOW STATEMENT Particulars (Rs. Crs) 31-Mar-22 31-Mar-21 Profit before Tax & Exceptional 486 343 Adjustment for Depreciation & other items 49 141 Operating profit before working capital changes 535 484 Changes in working capital (739) (429) Cash generated from operations (204) 55 D
Slide 14: Performance Ratios
PERFORMANCE RATIOS ROE ROCE 22.6% 22.5% 21.4% 19.4% 16.7% 10.8% 6.1% 7.4% FY19 FY20* FY21 FY22 FY19 FY20* FY21 FY22 NET DEBT/EQUITY NET DEBT/EBITDA EBIT/INTEREST 0.57 1.58 13.2 1.41 11.3 0.88 0.28 0.75 0.24 0.18 5.0 3.7 FY19 FY20 FY21 FY22 FY19 FY20 FY21 FY22 FY19 FY20 FY21 FY22 *FY20 includes excep
Slide 15: 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 March 2022 Modernization of Gokul Shirgaon spinning capacity 1. Completed 50.00 44.00 43.71 with Compact spinning technology Capacity to be operational by Q3 Incre
Slide 16: 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 17: Industry Update
; fact INDUSTRY UPDATE ae
Slide 18: Home Textile Market Scenario
HOME TEXTILE MARKET SCENARIO Global Home textile market is expected to reach $60bn by 2025 US is the major market 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 The Home te
Slide 19: Significant Growth in Indian Home Textile Exports Market
SIGNIFICANT GROWTH IN INDIAN HOME TEXTILE EXPORTS MARKET Indian Home Textile Market – Exports, USD Millions Indian Home Textile Market – Imports, USD Millions +9% -37% 5,728 298 5,272 9MFY22 5,405 188 9MFY22 170 9MFY21 4,002 9MFY21 130 FY20 FY21 FY20 FY21 The Country’s Home textile exports increas
Slide 20: Retail Ecommerce Sales in US
RETAIL ECOMMERCE SALES IN US Retail Ecommerce Sales in US, 2020 – 2025 Online shopping has emerged as the most demanding and popular online activity worldwide. 26.4 Worldwide retail and retail ecommerce spending 22.5 23.6 is expected to stabilize in 2022, after two years of 20.3 21.5 19.0 unpredicta
Slide 21: 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 12.0% 14.0% 11.0% 9.0% 13.0% 14.0% 12.0% 10.0% 9.0% 11.0% 12.0% 11.0% 12.0% 16.0% 14.0% 18.0% 19.0% 14.0% 19.0% 16.0% 20.0% 17.0% 48.0% 19.0% 20.0% 25.0% 15.0% 16.0% 20.0% 5
Slide 22: Advantage India
ADVANTAGE INDIA GOVERNMENT INITIATIVES Government’s push for ‘Atmanirbhar Bharat’ and ‘PLI FREE TRADE AGREEMENT scheme’ for import substitution and capacity building to Australia and the UAE signed FTA’s, which 01 dominate India’s presence in the global market will be implemented soon UK, Canada
Slide 23: Company Overview
% COMPANY OVERVIEW
Slide 24: About Us
ABOUT US Domestic Business The Largest Global Home Textile Bed Linen Company from India Launch of 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 Installing Biodiver
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 Solutions Corporate Office - Mumbai Manufacturing Plants - Inventory Planning • Showroom, Warehouse, E-com • Guj
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: Foray in B2C & D2C Segment
FORAY IN B2C & D2C SEGMENT
Slide 28: Growing Our Brand Portfolio
GROWING 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 FY21 4% of Revenue FY21 1% of Revenue Current focus on FY22 7% of Revenue FY22 2% of Revenue Shift from Ambitious
Slide 29: Enhancing Domestic Presence – Boutique Living & Layers
ENHANCING DOMESTIC PRESENCE – BOUTIQUE LIVING & LAYERS CAMPAIGNS IN INDIAN MARKET MARKETING STRATEGIES • Strategic tie-ups with Hollywood movies • Our bedding products spotted in more than 18 Indian TV serials • Newsprint campaign successfully tested in Telangana, and becomes No.1 market for ICIL •
Slide 30: Activities - Boutique Living Campaigns
ACTIVITIES - BOUTIQUE LIVING CAMPAIGNS BOUTIQUE LIVING CAMPAIGNS SIGNATURE COLLECTION HERITAGE WALK COLLECTION MEMPHIS ART COLLECTION LAUNCH WITH THE MOVIE THE 355 LAUNCH DECK LAUNCH DECK 29
Slide 31: Activities - Layers Campaigns
ACTIVITIES - LAYERS CAMPAIGNS LAYERS CAMPAIGNS HOLI WITH BE BOLD COLLECTION LAUNCH REPUBLIC DAY CAMPAIGN DRESS UP YOUR HOME WORLD WATER DAY WORK FROM HOME LAYERS & CHILL: WITH NATURE CAMPAIGN CAMPAIGN WOMEN’S DAY 30
Slide 32: Sustainability Is in Our DNA
SUSTAINABILITY IS IN OUR DNA
Slide 33: Our Commitment Towards Sustainability
OUR COMMITMENT TOWARDS SUSTAINABILITY We have come out with our first ESG Report - 2021 as our commitment towards sustainability We pledge to enrich the lives of all of our stakeholders We are constantly working to contribute to the global sustainable development goals (SDGs) through initiativ
Slide 34: Indo Count Is Now a Member at United Nations Global Compact
INDO COUNT IS NOW A MEMBER AT UNITED NATIONS GLOBAL COMPACT Indo Count is now 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 2
Slide 35: 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 36: Sustainability Initiatives
SUSTAINABLITY INITIATIVES • Indo Count is determined to protect the planet & people by contributing to climate change reduction by adopting of more renewable energy resources. • ICIL achieved a ‘B’ score which is in the management band (taking coordinated actions on climate issues) garnering a score
Slide 37: Sustainability Initiatives
SUSTAINABLITY INITIATIVES • We are a Sustainable Textile Production (STep) certified company with all of our products authorised to use the ‘Made in Green’ labelling • OEKO-TEX® Made in Green is a traceable product label for all forms of textiles • A Made in Green product ID verifies that the item h
Slide 38: ESG Initiatives
ESG INITIATIVES Environmental Social Governance • Installed renewable energy • CSR activities revolves around • Experience Board of Directors in the • Recycling and reuse of water Education, Healthcare, Water home textiles industry through modernized ETP plant sanitation and Women Empowerment • The
Slide 39: CSR Initiatives
CSR INITIATIVES 1 2 Water and Sanitation Healthcare We provide clean drinking water We facilitate free health check-ups in 100 through water purifiers and RO remote area villages by providing preventive systems that have benefitted and curative healthcare programs, where 100,000 people so far. we ha
Slide 40: CSR Initiatives
CSR INITIATIVES INITIATED THE MASSIVE MIYAWAKI PLANTATION PROGRAM IN MIDC WASTE LAND AT KOLHAPUR Before Process After Area of Plot: 5 acres Entire area is camouflaged with network of drip irrigation and system installed to water the planted plants Rainwater and excess water weir made to channeli
Slide 41: Awards & Recognition
AWARDS & RECOGNITION
Slide 42: Greentech Foundation's Environment Award
GREENTECH FOUNDATION’S ENVIRONMENT AWARD Received the 21st Annual Greentech Foundation’s Environment Award under Environment Protection Category Received ‘GREENTECH FOUNDATION’S ENVIRONMENT AWARD’ award at the hands of Principal Secretary – Energy, Mr. Dinesh Waghmare, IAS at a glittering function a
Slide 43: Awards & Recognition
AWARDS & RECOGNITION ‘e4m PRIDE OF INDIA – THE BEST OF BHARAT’ Award EXPORT AWARD BY STATE OF MAHARASHTRA Boutique Living has been chosen by the Editorial Board of exchange4media and impactonnect as a winner of ‘e4m PRIDE OF INDIA – THE BEST OF BHARAT’ Award 2022 Received Export Award in GOLD Catego
Slide 44: Awards & Recognition
AWARDS & RECOGNITION Mahatma Award 2021 India was conferred to Indo Count Indo Count has received CII National Awards for Indo Count's contribution towards various sustainability were Foundation under CSR Excellence Category, by hands of Dr. Kiran Excellence for its contribution in respect to improv
Slide 45: Youth Icon Textile Award
YOUTH ICON TEXTILE AWARD Mr. Mohit Jain honoured with The Economic Times Business Leader: Youth Icon Textiles Award 2021 The 2021 edition of the Awards aimed to bring to the forefront noteworthy business leaders who are spearheading our economy by inspiring accelerated and sustainable growth in thei
Slide 46: 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 Mr. Shogun Jain kklalpuria@indocount.com shogun.jain@sgapl.net | +91 77383 77756 Mr
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