Indo Count Industries Limited · NSE:ICIL
Indo Count Industries — Q2 FY2016 Earnings Presentation
29 slides from Indo Count Industries's earnings presentation, 2015
Slide 1: The Global Bed Linen Company
INDO COUNT INDUSTRIES LIMITED The Global Bed Linen Company Q2 FY2016
Slide 2: Safe Harbor Statement
SAFE HARBOR STATEMENT 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 F
Slide 3: Indo Count - Extending Profitability to Sustainability
INDO COUNT - EXTENDING PROFITABILITY TO SUSTAINABILITY Q2 FY 2016 > Q1FY2016 (in revenues and profits) 01 Focus on sustainable Larger Q2 volumes stakeholder value enhancement 06 02 derived from growing clientele Customer value proposition Growing clientele derived supported by prudent financial mana
Slide 4: Financial Performance for Q2, FY2016
PART 1: OVERVIEW FINANCIAL PERFORMANCE FOR Q2, FY2016 % % Q2FY2016 Q2FY2015 Q2FY2016 Q2FY2015 01 REVENUES (RS / CR) 582.13 478.83 GROWTH 21.6 06 TAX (RS / CR) 38.66 15.80 GROWTH 144.7 % Q2FY2016 Q2FY2015 % GROWTH Q2FY2016 Q2FY2015 02 EBITDA (RS / CR) 124.44 79.87 55.8 07 PAT (RS / CR) 65.95 42.50 GR
Slide 5: Financial Performance for H1, FY2016
PART 1: OVERVIEW FINANCIAL PERFORMANCE FOR H1, FY2016 % % H1FY2016 H1FY2015 H1FY2016 H1FY2015 01 REVENUES (RS / CR) 1,043.12 794.91 GROWTH 31.2 06 TAX (RS / CR) 68.01 25.39 GROWTH 167.8 % H1FY2016 H1FY2015 % GROWTH H1FY2016 H1FY2015 02 EBITDA (RS / CR) 228.22 131.84 73.1 07 PAT (RS / CR) 121.30 67.4
Slide 6: Profit and Loss Statement
PART 1: OVERVIEW PROFIT AND LOSS STATEMENT Rs. in Crore Change Q2FY2016 Q2FY2015 Particulars H1FY2016 H1FY2015 Change % % 582.13 478.83 21.6% REVENUE 1,043.12 794.91 31.2% EXPENSES 301.74 287.81 4.8% Material consumed 526.22 467.46 12.6% 25.46 17.95 41.8% Employee benefits 47.74 33.86 41.0% 130.49 9
Slide 7: Balance Sheet
PART 1: OVERVIEW BALANCE SHEET Rs. in Crore Particulars As on September 30, 2015 As on September 30, 2014 Sources of funds Share Capital 39.48 39.08 Reserves and Surplus 477.07 291.95 Warrant Application Money pending - 1.25 Long term borrowings 74.93 92.31 Other Non Current Liabilities 43.41 15.73
Slide 8: Prime Financial Indicators
PART 1: OVERVIEW PRIME FINANCIAL INDICATORS TERM DEBT (RS, CRORE) TERM DEBT/EQUITY RATIO 74.93 92.31 0.15 0.28 As on 30th Sep’15 As on 30th Sep’14 As on 30th Sep’15 As on 30th Sep’14 NET DEBT (RS, CRORE) NET DEBT/EQUITY RATIO 218.96 267.24 0.42 0.81 As on 30th Sep’15 As on 30th Sep’14 As on 30th Sep
Slide 9: What Analysts Might Miss at First Glance, H1 FY2016
PART 1: OVERVIEW WHAT ANALYSTS MIGHT MISS AT FIRST GLANCE, H1 FY2016 01 02 03 04 05 Profitable growth: PAT growth: Margins: Liquidity: Interest cover: For the 6th (80%) sharper Highest EBIDTA Long-term debt 8 times, highest successive quarter than revenue growth and declined to Rs.75 in the Company’
Slide 10: Performance Outlook for FY 2016
PART 1: OVERVIEW PERFORMANCE OUTLOOK FOR FY 2016 Products Manufacturing Increase offtake of existing products. 03 01 Achieve 50%-plus utilisation of the enhanced capacity. Widen product base. Invest in cutting-edge Prioritise innovation. technologies. 02 Customers Broaden customer base. Enter new co
Slide 11: Indo Count's Robust Business Model
PART 2: DETAILED ANALYSIS INDO COUNT’S ROBUST BUSINESS MODEL Strategic Integrated: Flexible: Evolving: Cotton yarn to fabric to Balanced in-sourcing From a conventional processed fabric to bed and out-sourcing yarn personality linen (commodity) into a global bed linen organisation (value-added). 11
Slide 12: Indo Count's Robust Business Model: Product and Markets
PART 2: DETAILED ANALYSIS INDO COUNT’S ROBUST BUSINESS MODEL Product and markets Brands: Recognised as a quality product manufacturer. Market: Address most demanding bed linen market (USA). Product mix: Present in the mid-to-high product niche (higher thread count). Relationships: Majority of the co
Slide 13: Indo Count's Robust Business Model: Manufacturing
PART 2: DETAILED ANALYSIS INDO COUNT’S ROBUST BUSINESS MODEL Manufacturing Technology: Spinning units comprised advanced equipment from Rieter, XORELLA &Uster and LMW, among others; home textiles business comprised equipment from reputed international brands like Tsudakoma, Benninger, Zimmer, Monfor
Slide 14: De-risking Strengthened Our Financials
PART 2: DETAILED ANALYSIS DE-RISKING STRENGTHENED OUR FINANCIALS 01 Business initiative 02 Impact Improving inventory turns One of sharpest profit increases in Concessional debt from TUFS India’s textiles industry Debt repayment focus Profits increased 7x across 3 years. Expansion at capital cost lo
Slide 15: De-risking Strengthened Our Financials: ROCE and ratios
PART 2: DETAILED ANALYSIS DE-RISKING STRENGTHENED OUR FINANCIALS 9.90% 7.80% 9.90% 12.60% 17.60% 21.90% 7.60% 5.80% 14.90% 25.40% 34.50% 69.00% 1.68 1.74 1.82 1.25 0.69 0.42 10.66 -2.31 29.52 110.39 161.44 242.6 The Company’s outperformance is showcased through… Return on capital employed Indo Count
Slide 16: Enhancing Shareholder Value
PART 2: DETAILED ANALYSIS INDO COUNT. ENHANCING SHAREHOLDER VALUE EPS in Rs. VALUATION DRIVERS 30.96 3.03 8.23 38.95 -0.61 61.42 Earnings per share Improving sentiment for the Indian textile sector Sustained high EBIDTA margin of 21.9% per cent in H1 FY2016 (16.6%, H1 FY2015) 31.2% topline growth in
Slide 17: Industry Discussion
PART 2: DETAILED ANALYSIS INDUSTRY DISCUSSION The global home textiles industry Indian home textiles industry Industry growth of 5% expected to sustain through Indian textiles industry contributes ~14% of Index of 2017 Industrial Production (IIP) and for around 5% of GDP Home linen nearly 21% of the
Slide 18: Industry Discussion: Made-Up Imports by United States
PART 2: DETAILED ANALYSIS INDUSTRY DISCUSSION Made - Up Imports by United States 17% 16% 14% 15% 14% 14% 3% 3% 2% 54% 8% 8% 8% 2% 57% 2% 56% 1% 1% 3% 1% 18
Slide 19: Industry Discussion: Growth in Made Ups Imports to United States
PART 2: DETAILED ANALYSIS INDUSTRY DISCUSSION Growth in ‘Made Ups’ Imports to United States World ($bn) Top 5 Made Ups Exporting Countries to US account for 87% of the Market ($bn) 65% of Indo Count’s Revenue is contributed by U.S. market 19
Slide 20: 'Make in India' and the Indian Textile Industry
‘MAKE IN INDIA’ AND THE INDIAN TEXTILE INDUSTRY Second largest textile Changing lifestyles; increasing manufacturer in the world demand for quality products Largest producer of cotton in Conducive Government the world (28%) policies 24% of the world’s spindles Centres of Excellence focused Competiti
Slide 21: Business Process
INDUSTRY DISCUSSION BUSINESS PROCESS Product Development Production Process Promotions Spinning 1 Research Weaving Global Showrooms Processing 2 Market Studies Cut-n-Sew 21
Slide 22: Global Presence
GLOBAL PRESENCE Showroom, Presence in Canada, design studio and Brazil, France, warehouse in Germany, Austria, Melbourne Spain and UAE, among others. USA AUSTRALIA ESTABLISHED ESTABLISHED IN IN 2011 2014 ENGLAND OTHERS ESTABLISHED IN 2014 Showroom and design studio in New York Warehouse for INDIA re
Slide 23: Major Products and Innovation at Indo Count Industries
MAJOR PRODUCTS AND INNOVATION AT INDO COUNT INDUSTRIES PRODUCTS INNOVATION Bed sheets: Flat sheet, fitted sheet and pillow cases Fashion bedding: Comforters, bed in bag, quilts and coverlets, decorative pillows, etc. Utility bedding: Basic white bedding, mattress pads, protectors, white filled comfo
Slide 24: Our Credentials
OUR CREDENTIALS FOURTH largest bed sheet exporter to USA 13th largest global home textiles supplier to the US (Source: Home & Textiles Today, February 2015). ICRA ‘A’ & ‘A1’+ Ratings for Long & Short term FIEO Award for Export excellence for “Top Exporter-Non MSME-Trading House” BUSINESS TODAY, in i
Slide 25: Our Achievements & Vision
OUR ACHIEVEMENTS & VISION TEXPROCIL has awarded SILVER TROPHY for 2014-15 SECOND Largest Manufacturer and Exporter of Bed Linen Lenders have de-pledged and released all the promoters shares pledged. No ENCUMBERANCE in any of the Promoters shareholding Company has declared 1st Interim Dividend at 10%
Slide 26: The Road Ahead
THE ROAD AHEAD Rs 475 cr capex plan in two phases Phase I expenditure with an outlay of Rs.175 cr - capacity to be enhanced 01 to 90 mn meters. To be completed by December 2016. Phase II expenditure is under active evaluation with outla of Rs. 300 cr – to be completed in 3 years Domestic branded ret
Slide 27: The Road Ahead: Domestic Market
THE ROAD AHEAD Domestic Market To venture into the domestic business segment through a subsidiary Company. Coming onboard to steer forward this project is Mr. Asim Dalal, the erstwhile owner of Bombay Stores and brings with him experience spanning 27 years in the domestic retail scenario. He will be
Slide 28: Triple Bottom-Line
TRIPLE BOTTOM-LINE Shareholders Employees Community Increased earnings per share 10,000 (direct and indirect). Paid Rs 225 cr taxes in from Rs 3.03 (2010-11) existence to Rs 61.42 Increased women workers from 39 (2010-11) to 610 Worked on health care, water *Annualised (2015-16). sanitation and educ
Slide 29: Investor Contacts
INVESTOR CONTACTS For further information please contact: Indo Count Industries Limited CIN: L72200PN1988PLC068972 Mr.KR Lalpuria – Executive Director kklalpuria@indocount.com Mr. R. Sundaram-Chief Financial Officer rsundaram@indocount.com www.indocount.com Investor Relations Advisors: Strategic Gro
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