Indo Count Industries Limited · NSE:ICIL
Indo Count Industries — Q4 FY2020 Earnings Presentation
39 slides from Indo Count Industries's earnings presentation, Jun 14, 2020
Slide 1: Cover letter to stock exchanges: Investor Presentation Q4FY20
14th June, 2020 The 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. : 5
Slide 2: Complete Comfort
Complete Comfort
Slide 3: Safe Harbor
Safe Harbor • 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: Q4 & FY20 Performance Highlights
Q4 & FY20 Performance Highlights 3
Slide 5: Chairman’s Message
Chairman’s Message Commenting on the results, Mr. Anil Kumar Jain, Executive Chairman said, “With good customer base, capital adequacy, wider geographic distribution, extensive sectoral understanding of products and product development as well as a relatively under leveraged Balance Sheet we are wel
Slide 6: Volume Sales
Volume Sales in million meters 64.3 - 64.8 2.5-3.0 Shutdown in operations due to Covid-19 pandemic led to volume forgo of 2.5-3.0 mn mts 57.5 61.8 54.3 ✓ Volume sales were achieved on the back of innovative product launches based on continuous R&D, deeper customer reach, and discovering new geograph
Slide 7: Volume Performance
Volume Performance in million meters +7% 61.8 57.5 +10% 48.9 44.6 Flat 12.9 12.9 9MFY19 9MFY20 Q4FY19 Q4FY20 FY19 FY20 On the back of continuous The nation-wide lockdown Despite challenging marketing efforts, achieved announced in mid-march led environment, able to achieve a volume growth of 10% to
Slide 8: Sustainable Business Model
Sustainable Business Model PBT before Revenue EBITDA Reported PAT* exceptional items +10% +43% +63% +22% 2,135 238 155 73 1,945 60 166 95 FY19 FY20 FY19 FY20 FY19 FY20 FY19 FY20 The Board has recommended Final Dividend of 30% (Re. 0.60 per equity share of Rs. 2/- each) for the Financial Year ended 3
Slide 9: Impact on Financials due to COVID-19
Impact on Financials due to COVID-19 Reported Financials Volumes Revenue Impact due to COVID-19 (in million meters) (in Rs. Crs.) +15% +12% 64.3 – 64.8 2,230 57.5 2.5-3.0 95 61.8 1,945 1,235 FY19 FY20 FY19 FY20 Shutdown in operations due to Covid- Due to temporary stoppage of 19 pandemic led to volu
Slide 10: Indo Count’s COVID-19 response
Indo Count’s COVID-19 response Employee Safety ✓ Encouraging employees to adopt to general principles of social distancing, health and safety of self and society at large ✓ Launched interactive sessions for the wellbeing of employees Liquidity Management ✓ Financial prudence ✓ Credit Insurance monit
Slide 11: Outlook for FY21
Outlook for FY21 ✓ The COVID-19 situation is evolving and it is still too early to know the true economic and earnings impact of the pandemic. Considering the fact that the situation is exceptional and is changing dynamically, the Company is unable to gauge with certainty, the future impact on its b
Slide 12: Consolidated Profit & Loss Statement
Consolidated Profit & Loss Statement Particulars (Rs. Crs) Q4FY20 Q4FY19 YOY% FY20 FY19 YOY% Total Income^^ 425 442 -4% 2,135* 1,945 10% Cost of Raw Material 203 253 1,139 1,031 Employee Expenses 38 34 148 144 Other Expenses 148 139 609 603 Total Expenses 390 426 1,897 1,778 EBITDA 35 16 126% 238 16
Slide 13: Consolidated Balance Sheet – Mar’20
Consolidated Balance Sheet – Mar’20 ASSETS (Rs.Crs) Mar’20 Mar’19 EQUITY AND LIABILITIES (Rs.Crs) Mar’20 Mar’19 Non-Current Assets Equity Property, Plant & equipment 562 572 Equity Share Capital 39 39 Capital Work in progress 6 16 Other Equity 947 935 Other Intangible Assets 13 3 Total Equity 986 97
Slide 14: Reduction in Net Debt
Reduction in Net Debt Long Term Debt Net Debt Net Debt / Equity -37% -35% 57 304 0.31 36 198 0.20 Mar’19 Mar’20 Mar’19 Mar’20 Mar’19 Mar’20 13
Slide 15: Consolidated Cash Flow Statement - Mar’20
Consolidated Cash Flow Statement - Mar’20 Particulars (Rs. Crs) Mar’20 Mar’19 Profit before Tax & Exceptional 155 95 Adjustment for Depreciation & other items (82) 23 Operating profit before working capital changes 74 118 Changes in working capital 92 134 Cash generated from operations 166 253 Direc
Slide 16: Long term Outlook
Long term Outlook 01 02 03 Product development & Improving operational Global reach & Innovation efficiency Sustainability ▪ Focus on Bed Linen in the Home ▪ Moving towards overall ▪ Establish relationship with new Textiles sphere sustainability marquee global customers ▪ Focus on value-added produc
Slide 17: Advantage India
Advantage India Wit '
Slide 18: India’s edge in the home textiles market
India’s edge in the home textiles market CHINA + 1 strategy as Growing global respect Abundant availability of brands will seek for Indian products; raw material – India is second source dependable long-term the world’s largest partner cotton producer Steady capability Access to a skilled, A signifi
Slide 19: Raw Material Advantage
Raw Material Advantage Production of Cotton (million bales) +2% ✓ India is world’s largest producer of cotton. 33.7 Production of cotton in India grew from 28.0 million 28.0 bales in FY07 to 33.7 million bales in FY19P, at a CAGR of 1.6% ✓ The abundant supply of Cotton is a boon to the Indian Textil
Slide 20: Structural Shift to India
Structural Shift to India Top 5 Home Textiles Exporting Nations • China has a share in home textile exports at 39% 39% with US$ 19 bn followed by India at 11% with US$ 5 bn • India with growth rate of 4%, has increased its world share from 9% to 11% in the past 5 years. China has remained almost sta
Slide 21: India’s Gaining Market Share in US Imports
India’s Gaining Market Share in US Imports (in % Market Share) India China Cotton Bedspreads Cotton Sheets RoW 70 70 60 60 49 50 50 50 40 40 30 30 20 14 17 20 10 10 CY16 CY17 CY18 CY19 CY16 CY17 CY18 CY19 Cotton Pillowcases 60 53 50 50 Over a long-term period, with 40 integrated approach and abundan
Slide 22: Indo Count: At a Glance
Indo Count: At a Glance 21
Slide 23: 3 Pillars of Strength
3 Pillars of Strength INNOVATION QUALITY SERVICE ✓ We are respected by ✓ We are recognised for the ✓ We believe that the sale customers for the ability to creativity of products that begins once the product has extend the product frontier. are aesthetic and enduring. been marketed and We are known f
Slide 24: 29 years of Our Journey
29 years of Our Journey 1990-91 2007 2008 2011 2012 2014-15 2017 2018 ICIL established Forayed into Acquired Established Bed Linen Established Enhanced Established home textile by Pranavaditya showroom, capacity showroom and capacity to 90 office in Dubai Commencement to tap newer setting up 36 Spin
Slide 25: Our Approach to Business: Integrated bedding solutions
Our Approach to Business: Integrated bedding solutions Branding & Spinning Processing Marketing Concept Design & Weaving Cut & Sew Sampling Complete comfort for the best Sleep experience with… Innovation, Quality and Service 24
Slide 26: Our competencies and differentiators
Our competencies and differentiators 01 02 03 Strong domain Operationally Global player expertise efficient ▪ Recognized market player ▪ Customer-centricity thus ▪ Efficient and scalable with a focus in bed linen focusing on enhanced operations service ▪ Established business with ▪ Experienced manag
Slide 27: Innovation Collaboration – LEEDS University
Innovation Collaboration – LEEDS University UNIVERSITY OF LEEDS - FUTURE OF INNOVATION Leeds University has a long and distinguished history in textile technology and design stretching back to its predecessor, the Yorkshire College of Science. The collaboration of Indo Count & the University of Leed
Slide 28: Our Brands
Our Brands In-House Brands 14 In-House Brands Licensed Brands 4 Licensed Brands 27
Slide 29: “Boutique Living” Brand in India
“Boutique Living” Brand in India • In India, our in-house brand ‘Boutique Living’ provides premium bedding through more than 500 stores pan-India • Products available online at: www.boutiquelivingindia.com 28
Slide 30: Global Presence
Global Presence India USA UK UAE Headquartered in Showroom and Showroom, design Established office in Mumbai design studio in studio and Dubai to tap newer New York warehouse in geographies Manufacturing Manchester facilities in Warehouse for Kolhapur, distribution at Maharashtra Charlotte Showrooms
Slide 31: Sustainability Initiatives
Sustainability Initiatives 30
Slide 32: Project GAGAN: A Sustainable Cotton Initiative
Project GAGAN: A Sustainable Cotton Initiative ✓ Improve sustainability in cotton farming for farmers in Warora Taluka of Chandrapur District in Maharashtra state ✓ Aims at covering 1,500 farmers in 10 villages to begin with and subsequently increasing the scope of this program to 30 villages thus h
Slide 33: Partnering Walmart in Project GIGATON
Partnering Walmart in Project GIGATON Indo Count commitment towards Walmart Project Gigaton : Sustainability Goals Sustainability Unit Per Annum - Target Parameter Power KWH “1.5 million Units” Power Consumption Reduction Carbon Footprints – Reducing CO2 emission equivalent to Fuel MT 10,000 MT’s by
Slide 34: Awards & Accolades
Awards & Accolades i WAN , | 33
Slide 35: Texprocil Award for 2018-19
Texprocil Award for 2018-19 Winner of Gold Trophy Gold for the Highest export performance in Made Ups-Bed Linen/Bed Sheets/Quilts Winner of Gold Trophy Gold for the Special Achievement Award in Made-ups Silver Plaque Silver for the Second Highest exports performance in Yarn- Counts 50s and below 34
Slide 36: Recognition by large retailers
Recognition by large retailers KOHL’s, a large retailer in USA has awarded our Company for “Best Collaboration in Design & Product development” JC Penney, a large retailer in USA has awarded us with a “Platinum Certification Status” for Sheets & Fashion bedding category 35
Slide 37: CSR: At Indo Count ‘Every smile counts’
CSR: At Indo Count ‘Every smile counts’ EDUCATION HEALTHCARE WOMEN WATER & SANITATION ➢ 4 Medical Vans reaching EMPOWERMENT ➢ Promoting sanitation by ➢ Promoting Education by implementation of E- 100 rural villages around building/ maintaining ➢ Trained women’s through learning systems in Kolhapur p
Slide 38: About Us
About Us • Indo Count Industries Ltd (ICIL), is one of India’s largest home textiles manufacturer. • Mr. Anil Kumar Jain, Executive Chairman, has been ranked 10th amongst the India’s Best Top 100 CEO’s 2017 by Business Today. Under his leadership, the Company has focused on some of the world’s fines
Slide 39: Investor Contact
Investor Contact For further information please contact: Indo Count Industries Limited CIN: L72200PN1988PLC068972 Mr. K.R. Lalpuria, Executive Director & C.E.O kklalpuria@indocount.com Mr. K. Muralidharan, Chief Financial Officer (CFO) k.muralidharan@indocount.com Investor Relations Advisors: Strate
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