Indo Count Industries Limited · NSE:ICIL
Indo Count Industries — Q3 & 9M FY22 Earnings Presentation
43 slides from Indo Count Industries's earnings presentation, Feb 7, 2022
Slide 1: Indo Count Industries – Investor Presentation Q3 & 9M FY22
INDO COUNT Complete Comfort February 7, 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 Symb
Slide 2: Indo Count Industries Limited Q3 & 9MFY22 Investor Presentation
Indo Count Industries Limited Q3 & 9MFY22 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, “During the quarter, despite inflationary pressures, the Company has been able to maintain the margin profile. We continue to work towards strengthening our positioning in key markets globally backed by inno
Slide 5: Company Performance
COMPANY PERFORMANCE
Slide 6: Key Highlights
KEY HIGHLIGHTS Despite hurdles improved profitability Better Product Mix EBITDA 16.7% % Contribution to Revenue 9M FY22 FY21 19.3% Despite rising input costs and +43% Branded Business 14% 10% unavailability of shipping containers 442 and other logistic challenges 309 Fashion/Utility/ Institutional 1
Slide 7: Consolidated 9MFY22: Growing Volumes, Revenues & Profitability
CONSOLIDATED 9MFY22: GROWING VOLUMES, REVENUES & PROFITABILITY +3% +24% 56.5 58.1 2,292 1,852 Volume Total Income 58.1 Mn metres Rs. 2,292 Crs 9MFY21 9MFY22 9MFY21 9MFY22 16.7% 19.3% +43% +43% 442 273 PAT 309 Rs. 273 Crs 191 EBITDA Rs. 442 Crs EPS EBITDA Margins Rs. 13.84 9MFY21 9MFY22 9MFY21 9MFY22
Slide 8: Q3 & 9MFY22 Consolidated Financial Performance
Q3 & 9MFY22 CONSOLIDATED FINANCIAL PERFORMANCE Particulars (Rs. Crs) Q3FY22 Q3FY21 YoY% 9MFY22 9MFY21 YoY% Total Income 787 792 -1% 2,292 1,852 24% EBITDA 146 143 2% 442 309 43% EBITDA Margin (%) 18.6% 18.0% 60 bps 19.3% 16.7% 260bps Depreciation 10 11 30 33 Finance Cost 15 7 39 17 Profit Before Tax
Slide 9: Business Update
BUSINESS UPDATE ▪ The industry has been witnessing headwinds related to shortages and unavailability of shipping containers, increase in freight costs and longer transit duration. The inflationary pressure on logistics and supply chain is likely to persist ▪ Since late November/December 2021, with t
Slide 10: Indo Count Acquires Home Textile Business of GHCL Limited
INDO COUNT ACQUIRES HOME TEXTILE BUSINESS OF GHCL LIMITED The acquisition will catapult Indo Count to a leadership position in the Global Home Textiles Bedding segment ▪ GHCL Limited is a well-diversified group with footprint in chemicals, textiles and consumer products segment Overview ▪ Its textil
Slide 11: 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 12: Industry Performance
INDUSTRY PERFORMANCE
Slide 13: Relevance of Xinjiang Cotton Ban to Indian Home Textile Industry
RELEVANCE OF XINJIANG COTTON BAN TO INDIAN HOME TEXTILE INDUSTRY ▪ China accounts for 26% of global cotton production Global Cotton Production ▪ ~80% of the Cotton produced in China is from Xinjiang region, thereby translating to ~20% of the India global cotton production 25% China 26% ▪ India advan
Slide 14: US Holiday Sales
US HOLIDAY SALES Historical Holiday Sales ($ in billion) Holiday sales grew 14.1% setting a new record despite challenges from inflation, supply chain disruptions and the ongoing pandemic $886.7 $777.3 $679.2 $691.5 $718.6 $611.5 $628.2 $646.7 $553.3 $567.6 $583.5 $528.8 14.1% 3.9% 8.2% 2.7% 3.0% 5.
Slide 15: USA Retail Sales
USA RETAIL SALES US Retail sales Historical Retail Sales ($ in trillions) January to December 2021 4.44 – 4.56 17.1% 19.3% 3.67 3.81 4.02 3.38 3.51 2.84 2.94 3.03 3.17 3.28 2.70 Oct-Dec’20 Oct-Dec’21* Jan-Dec’20 Jan-Dec’21* 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021P Historical Chan
Slide 16: Significant Growth in Indian Home Textile Exports Market
SIGNIFICANT GROWTH IN INDIAN HOME TEXTILE EXPORTS MARKET Indian Home Textile Market – Exports, USD Millions +9% ✓ The Country’s Home textile exports increased by 54% in 5,728 5,272 H1FY22 H1FY22 3,528 ✓ Indian Textile companies to gain from ‘China +1’ strategy ✓ India Accounts for ~7-9% of the globa
Slide 17: India Gaining Market Share in USA Home Textiles Market
INDIA GAINING MARKET SHARE IN USA HOME TEXTILES MARKET US imports of Cotton Sheets US imports of Cotton Pillow cases US imports of Cotton Bedspread Figures in % 75 75 75 60 60 60 45 45 45 30 30 30 15 15 15 0 0 0 CY19 CY20 Jan-Nov21 CY19 CY20 Jan-Nov21 CY19 CY20 Jan-Nov21 India 50 52 57 India 53 54 5
Slide 18: Factors Playing Out for Indian Home Textile Players
FACTORS PLAYING OUT FOR INDIAN HOME TEXTILE PLAYERS CHINA + 1 STRATEGY COTTON BAN FROM XINJIANG 01 ‘China Plus One’ has led to several western countries looking at alternate REGION markets The ban of cotton from the Xinjiang region would 02 lead to increased capacities in the Indian market over a lo
Slide 19: Company Overview
COMPANY OVERVIEW
Slide 20: About Us
ABOUT US Domestic Business One of the largest manufacturer and exporter of bed sheets, bed linen, quilts 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 ESG Focused O
Slide 21: Our Global Reach
OUR GLOBAL REACH SERVICES (WORLD OVER) Product Development EDI-based replenishment services Market Research Total Supply Chain Solutions Inventory Planning Innovation Modern warehousing services E-Commerce fulfillment Consumer Insights Indo Count exports to more than 54 countries across 5 continents
Slide 22: 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 23: Foray in B2C & D2C Segment
FORAY IN B2C & D2C SEGMENT
Slide 24: Growing Our Brand Portfolio
GROWING OUR BRAND PORTFOLIO Health & Hygiene Performance Brand Organic Cotton Brand Color based range Kids focused Brand Brand Diversified Brand Portfolio Value Driven Mid-market Luxury Brand Sustainability Brand Cotton centric Brand Mass Brand aspirational Brand Focused digital presence in US, Euro
Slide 25: Enhancing Domestic Presence – Boutique Living & Layers
ENHANCING DOMESTIC PRESENCE – BOUTIQUE LIVING & LAYERS CAMPAIGNS IN INDIAN MARKET MARKETING STRATEGIES • Influencer marketing via local influencers • Initiated Personal based marketing and created ad campaigns for impressions and link clicks • Amazon, Facebook and Instagram linked Campaigns created
Slide 26: Activities During the Quarter – Boutique Living
ACTIVITIES DURING THE QUARTER – BOUTIQUE LIVING CAMPAIGNS PURE EARTH COLLECTION STRIPE TEAS COLLECTION NEW YEAR CAMPAIGN LAUNCH FILM LAUNCH FILM 25
Slide 27: Activities During the Quarter – Layers
ACTIVITIES DURING THE QUARTER – LAYERS NAVRATRI PANCHTATVA COLLECTION LAUNCH VELLE FILM COLLABORATION WITH FERRARA COLLECTION CHRISTMAS 26
Slide 28: Trade Promotions | HGH India Expo 2021
TRADE PROMOTIONS | HGH INDIA EXPO 2021 – BOUTIQUE LIVING & LAYERS GLIMPSES 21,300 serious trade visitors from 460 cities and towns from all over India and about 40 international buyers attended HGH India 2021. 27
Slide 29: Licensed Brand Tie-up for Global Markets
LICENSED BRAND TIE-UP FOR GLOBAL MARKETS The partnership will support Indo Count’s long term vision to be the cornerstone for home textiles across the globe ▪ Announced new partnership with a licensed brand, Jasper Conran O.B.E. for an exclusive bed and bath collection, launching in Spring 2022 ▪ Th
Slide 30: Sustainability Is in Our DNA
i eee SUSTAINABILITY IS INOUR DNA
Slide 31: Sustainability Initiatives
SUSTAINABLITY INITIATIVES We have signed the United Nations Global Compact and are committed to integrate UNGC’s Principles into our Associated with SAC (Sustainable Apparel organizational culture and ensure building a greener Coalition) through HIGG index tool. Two of our sustainable future. facili
Slide 32: Sustainability Initiatives
SUSTAINABLITY INITIATIVES Dyes from Natural Waste Extract The programme aims at improving awareness among the farmers to cultivate To foster our sustainable offerings, we are sustainable forms of cotton. using plant-based dyes on organic cotton In step with this mindset, we launched an for our Pure
Slide 33: ESG Initiatives
ESG INITIATIVES Environmental Social Governance • Installed renewable energy • CSR activities revolves around Education, • Experience Board of Directors in the home • Recycling and reuse of water through Healthcare, Water sanitation and Women textiles industry modernized ETP plant Empowerment • The
Slide 34: CSR Initiatives
CSR INITIATIVES EDUCATION HEALTHCARE • We developed and adopted multifaceted approach through E- learning to increase attendance and stimulate learning • Medical Vans reaching 100 rural villages around Kolhapur amongst students providing free medicines and check-ups • Besides E-learning, various oth
Slide 35: CSR Initiatives
CSR INITIATIVES Indo Count Industries Ltd ‘ covin - 19 ‘ @ vaccination camp" ciTi CORA we GAGAN -A Cotton initiative of re comes you to JAGRUT”. \HIYAN #arora FARMER'S
Slide 36: Awards & Recognition
- > a AWARDS & RECOGNITION
Slide 37: Mahatma Award for CSR Excellence
MAHATMA AWARD FOR CSR EXCELLENCE Mahatma Award recognizes and celebrates impact leaders and change makers across the globe, who are making social impact and leading the way to a sustainable future. The prestigious Mahatma Award 2021 India was conferred to Indo Count Foundation under CSR Excellence C
Slide 38: Sustainability Awards
SUSTAINABILITY AWARDS Global Sustainability Award CII Water Award Indo Count's contribution towards various sustainability Indo Count has received CII National Awards for initiatives like Emissions reduction, Water Conservation, Utilities Excellence for its contribution in respect to optimization, P
Slide 39: Texprocil Export Awards 2019-20
TEXPROCIL EXPORT AWARDS 2019-20 Indo Count Industries Ltd. wins for a second consecutive year, two golds at Texprocil Export Awards 2019-20 Gold Trophy for the Highest export performance in Cotton Made Ups-Bed Linen/Bed Sheets/Quilts Gold Trophy for the Special Achievement Award in Cotton Made-ups 3
Slide 40: Recognition to Our Domestic Brands
RECOGNITION TO OUR DOMESTIC BRANDS ‘BOUTIQUE LIVING’ FELICITATED BY ‘LAYERS’ RECOGNIZED AS THE ECONOMIC TIMES AS ‘ET ICONIC BRAND OF 2021’ ‘THE FEMINA POWER BRAND OF THE YEAR 2021’ 39
Slide 41: 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 42: Healthcare CSR of the Year 2021
HEALTHCARE CSR OF THE YEAR 2021 ▪ Honoured with the Navabharat Group 'Healthcare CSR of the Year’ Award ▪ The recognition was conferred to Indo Count by the GOVERNOR OF MAHARASHTRA, for our work towards Corporate Social Responsibility ▪ Commenting on the illustrious achievement, Mr. Mohit Jain, Exec
Slide 43: 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
Indo Count Industries — Q3 & 9M FY22 Earnings Presentation on 6ix