Slide 1: Indo Count Industries Limited - The Global Bed Linen Company
INDO COUNT INDUSTRIES LIMITED THE GLOBAL BED LINEN COMPANY
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: Record performance in the first quarter of 2015-16
A NUMBER OF FACTORS HELPED INDO COUNT INDUSTRIES REPORT A RECORD PERFORMANCE IN THE FIRST QUARTER OF 2015-16 VALUE-ADDITION VISION 01 05 02 COURAGE 04 03 INTEGRATION SUSTAINABLE
Slide 4: Right at the outset…
Right at the outset… The principal points that we wish to make are that at Indo Count Industries Limited … …our record performance in NOT the first quarter of 2015-16 was ONE-OFF not one-off LONG-TERM … our industry outperformance STRUCTURAL was the result of a long-term SHIFT structural shift in ou
Slide 5: This is how we reported a record first quarter, 2015-16
THIS IS HOW WE REPORTED A RECORD FIRST QUARTER, 2015-16 % % Q1FY2016 Q1FY2015 Q1FY2016 Q1FY2015 1 6 REVENUES GROWTH TAX GROWTH (RS / CR) (RS / CR) 460.99 316.08 46% 29.35 9.59 206% % EBITDA Q1FY2016 Q1FY2015 % GROWTH PAT Q1FY2016 Q1FY2015 GROWTH 2 (RS / CR) 103.77 Q1FY2016 51.97 Q1FY2015 100% % 7 (R
Slide 6: Profit and Loss Statement
PROFIT AND LOSS STATEMENT Q12016 Q12015 GROWTH FY2015 REVENUE Revenue from operations 454.65 303.37 1,615.56 Operating Income 6.33 12.71 64.38 TOTAL REVENUE 460.99 316.08 46% 1,679.95 EXPENSES Material Consumed 224.48 179.65 25% 933.71 Employee Benefits 22.05 15.91 39% 72.78 Other Expenses 110.69 68
Slide 7: Balance Sheet
BALANCE SHEET 30-06-2015 Rs. Cr 31-03-2015 Rs. Cr SOURCE OF FUNDS SHAREHOLDERS' FUNDS Share Capital 41.98 41.98 Reserves & Surplus 413.70 360.86 NON - CURRENT LIABILITIES Long Term Borrowings 73.48 67.15 Deferred Tax Liabilities 40.47 40.12 Long Term Provisions 1.13 1.38 - - CURRENT LIABILITIES - -
Slide 8: Major Financial Indicators
MAJOR FINANCIAL INDICATORS TERM DEBT (RS, CRORE) TERM DEBT/EQUITY RATIO 73.47 101.10 Q1FY2016 Q1FY2015 0.16 Q1FY2016 0.34 Q1FY2015 NET DEBT (RS, CRORE) NET DEBT/EQUITY RATIO 247.55 352.35 Q1FY2016 Q1FY2015 0.54 Q1FY2016 1.21 Q1FY2015 RETURN ON CAPITAL RETURN EMPLOYED* (*ANNUALISED) ON EQUITY* (*ANNU
Slide 9: The Big Points
THE BIG POINTS Reported PAT growth Highest-ever Interest cover profitable 122% sharper EBIDTA (EBIDTA / growth for the than revenue margin across interest) at ninth quarter growth 46% the last 12 6.99 times, in the last 13 quarters highest in the quarters company’s history 9
Slide 10: Agenda for 2015-16
AGENDA FOR 2015-16 TO ACHIEVE AT LEAST 50% UTILISATION OF THE ENHANCED CAPACITY INCREASE CUSTOMER BASE ENRICH PRODUCT MIX ENTER NEW COUNTRIES ACCELERATE PRODUCT INNOVATION 10
Slide 11: Our business model and how it is enhancing long-term value - 1
PART TWO OUR BUSINESS MODEL AND HOW IT IS ENHANCING LONG-TERM VALUE - 1 STRATEGIC 1 Integrated: Cotton yarn to fabric to processed fabric to bed linen Culture: Prudent forward integration over backward integration Flexible and focused: Prudent mix of in-sourcing and outsourcing Value-added: Transfor
Slide 12: Our business model and how it is enhancing long-term value - 2
PART TWO OUR BUSINESS MODEL AND HOW IT IS ENHANCING LONG-TERM VALUE - 2 PRODUCT AND MARKETS 2 Brand: Positioned as a mid-to-high bed linen company Market: Principal export to the most demanding bed linen market (USA). Consumers: Servicing some of the largest and most respected global retail brands.
Slide 13: Our business model and how it is enhancing long-term value - 3
PART TWO OUR BUSINESS MODEL AND HOW IT IS ENHANCING LONG-TERM VALUE - 3 MANUFACTURING Technology: Spinning units comprised advanced equipment from Rieter, 3 XORELLA &Uster and LMW, among others; home textiles business comprised equipment from reputed international brands like Tsudakoma, Benninger, Z
Slide 14: De-risking strengthened our financials
DE-RISKING STRENGTHENED OUR FINANCIALS Business initiative Impact § Increased inventory turns § One of the most attractive profit increases in India’s textiles industry. § Concessional debt from TUFS § Profitable growth in 10 of the last 13 § Expansion at capital cost lower than quarters indust
Slide 15: De-risking strengthened our financials
DE-RISKING STRENGTHENED OUR FINANCIALS OUR BUSINESS MODEL HAS TRANSLATED INTO FINANCIAL OUTPERFORMANCE Return on capital employed §Indo Count’s ROCE, 2014-15: 34.5% §Average textile industry ROCE (spinning-weaving-processing companies): 11.3% Asset: turnover ratio Indo Count has the second highest
Slide 16: Our business is enhancing shareholder value
OUR BUSINESS IS ENHANCING SHAREHOLDER VALUE EARNINGS ENHANCING PER SHARE VALUATIONS § Equity constant at Rs 40 cr § Combination of high EBIDTA margin of 22.54% per cent (Q1 of 2015-16), Rs 36 cr cash on books and a 45% topline growth in Q1 2015-16 § This fusion helped enhance discounting on the c
Slide 17: Industry Discussion
INDUSTRY DISCUSSION THE GLOBAL HOME INDIAN HOME TEXTILES INDUSTRY TEXTILES INDUSTRY § Industry growth of 5% expected to sustain § Indian textiles industry contributes ~14% of Index through to 2017 of Industrial Production (IIP); accounts for around 5% of GDP § Bed linen constitutes close to 21% o
Slide 18: Industry Discussion - Sustaining growth
INDUSTRY DISCUSSION SUSTAINING GROWTH Started 2007: Commenced home textile business with 36 mn metres per annum 2012: Expanded to 45 mn metres per annum through debottlenecking 2015: Brownfield expansion to 68 mn metres per annum 2016: Further expansion to be evaluated post stabilisation of the new
Slide 19: Industry Discussion - Business process
INDUSTRY DISCUSSION BUSINESS PROCESS Product Development Production Process Promotions Spinning 1 Research Weaving Global Showrooms Processing 2 Market Studies Cut-n-Sew 19
Slide 20: Industry Discussion - Made-up imports to US
INDUSTRY DISCUSSION MADE-UP IMPORTS TO US 14% 14% 14% 3% 2% 3% 8% 8% 8% 2% 1% 2013 57% 2% 1% 2014 56% 3% 1% 2015* 54% 15% 16% 17% China India Bangladesh Vietnam Pakistan Turkey Others Consistent increase in India’s share *From Jan’15 – May’15 20
Slide 21: India – Growing Market
INDUSTRY DISCUSSION India – Growing Market 21
Slide 22: Industry Discussion - India's textile market size
INDUSTRY DISCUSSION INDIA'S TEXTILE TEXTILE AND APPAREL DEMAND FOR APPAREL MARKET SIZE INDUSTRY EXPORTS FROM INDIA The size of India's textile market is expected Textile and apparel exports from India is Demand for apparel is likely to rise to USD122 to expand at a CAGR of 10.1 per cent over expecte
Slide 23: The textile industry and 'Make in India'
The textile industry and ‘Make in India’ FACTS DRIVERS § 2nd largest textile § Changing lifestyles; increasing manufacturer in the world demand for quality products § 2nd largest producer of silk § Conducive Government and cotton policies § 24% of the world’s spindles § Centers of excellence f
Slide 24: 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 IN ESTABLISHED IN 2011 2014 ENGLAND OTHERS ESTABLISHED IN 2014 § Showroom and design studio in New York § Warehouse
Slide 25: 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, comforter
Slide 26: Our sales, exports and customers
OUR SALES, EXPORTS AND CUSTOMERS OVERVIEW EXPORTS § Third largest bed linen exporter from India § Predominant US focus (70% of sales) § Fourth largest company to export bed linen to USA § Non-US sales across 48 countries § The thirteenth largest global home textiles supplier § Prominent non-US
Slide 27: Our ratings and awards
OUR RATINGS AND AWARDS Received ‘A’ rating from ICRA for long-term DEBT exposure and A1+ rating for short-term exposure. Received the Export Excellence Award for “Top Exporter-Non MSME- Trading House” category conferred by FIEO (Western Region) Received the Gold trophy from TEXPROCIL for Special Ach
Slide 28: Triple Bottomline
TRIPLE BOTTOMLINE Shareholders Employees Community Increased earnings per 10,000 people (direct Paid Rs 150 cr taxes in share from Rs 3.03 and indirect. its existence. (2010-11) to Rs 38.95 (2014-15) and 14.02 in Increased the Worked on Health care, Q1 2015-16. proportion of women in water sanitatio
Slide 29: Our Vision
OUR VISION TO EMERGE AMONG THE THREE LARGEST BED LINEN MANUFACTURERS AND EXPORTERS IN THE WORLD. THE GLOBAL BED LINEN COMPANY 29
Slide 30: Investor Contacts
INVESTOR CONTACTS For further information please contact: Indo Count Industries Limited CIN: L72200PN1988PLC068972\ Mr. K.R. Lalpuria Executive Director kklalpuria@indocount.com Mr. R. Sundaram CFO & CS rsundaram@indocount.com www.indocount.com Investor Relations Advisors: Strategic Growth Advisors