Indo Count Industries Limited · NSE:ICIL
Indo Count Industries — Q3 FY2021 Earnings Presentation
41 slides from Indo Count Industries's earnings presentation, Jan 21, 2021
Slide 1: Complete Comfort - Indo Count Industries Ltd
Complete Comfort January 21, 2021 The National Stock Exchange of India Ltd. BSELimited 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: IOL Scr
Slide 2: Indo Count Industries Limited Investor Presentation January 2021
Indo Count Industries Limited Investor Presentation January 2021
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 se
Slide 4: Q3 & 9MFY21 Performance Highlights
Q3 & 9MFY21 Performance Highlights 3
Slide 5: Chairman's Message
CHAIRMAN’S MESSAGE Commenting on the results, Mr. Anil Kumar Jain - Executive Chairman said, “We are on track with renewed momentum of staying relevant to our customers with the right product & services. Our technology competence, talented team, complete portfolio solutions along with our long-term
Slide 6: Record Holiday Sales
RECORD HOLIDAY SALES ▪ Cyber Monday spending rose 15.1% YoY at $10.8 billion, setting a record for the largest U.S. online shopping day ever ▪ Consumers spent a record $9 billion on retail websites on Black Friday, a growth of 21% YoY ▪ American consumers' online spending hit a record high of $5.1 b
Slide 7: Historical Holiday Sales in US
HISTORICAL HOLIDAY SALES IN US Despite unprecedented challenges, consumers and retailers demonstrated incredible resilience this holiday season $789.4 in Billion $729.1 $687.4 $700.7 $652.6 $614.1 $632.9 $584.4 $553.3 $567.6 $526.0 $528.8 $496.0 $512.1 $501.5 $502.7 $467.2 $437.6 $416.4 2002 2003 20
Slide 8: Additional Demand Creation
ADDITIONAL DEMAND CREATION “HOME - A Safe Haven” Quality of Life Growing interest in ‘HOMES’ due to WFH culture The pandemic has created convergence between Declining Interest Rates leading to Consumer “HOME” and “Quality of Life” Spending The spaces we live in, and what we demand of them, stand to
Slide 9: Q3FY21: Growing Volumes, Revenues & Profitability
Q3FY21: GROWING VOLUMES, REVENUES & PROFITABILITY 37% 24% 23.86 792 637 17.43 Volume Revenue 23.86 Mn Rs. 792 Crs Meters Q3FY20 Q3FY21 Q3FY20 Q3FY21 75% 374% 143 93 81 PAT EBITDA Rs. 93 Crs Rs. 143 Crs 20 Q3FY20 Q3FY21 EPS Q3FY20* Q3FY21 Rs. 4.71 8 *Q3FY20 PAT is after exceptional items
Slide 10: 9MFY21: Growing Volumes, Revenues & Profitability
9MFY21: GROWING VOLUMES, REVENUES & PROFITABILITY 16% 6% 56.52 1,852 48.90 1,743 Volume Revenue 56.52 Mn Rs. 1,852 Crs Meters 9MFY20 9MFY21 9MFY20 9MFY21 31% 195% 309 191 235 PAT EBITDA Rs. 191 Crs 65 Rs. 309 Crs 9MFY20 9MFY21 EPS 9MFY20* 9MFY21 Rs. 9.76 9 *9MFY20 PAT is after exceptional items
Slide 11: Resilient Indo Count to Seize Growth Opportunities
RESILIENT INDO COUNT TO SEIZE GROWTH OPPORTUNITIES Volumes ‘HOME’ has taken a center stage Product Innovation through entry in Health & Revenues 9M PERFORMANCE Wellness categories Long Term Customer Relationships EBITDA GROWTH DRIVERS Deeper Penetration across categories and markets PAT Robust Balan
Slide 12: Sales Volume Performance
SALES VOLUME PERFORMANCE in million meters Quarterly Performance 9M Performance FY21 Volume Guidance +37.1% +15.6% 61.8 72-75 23.86 56.52 22.76 57.5 COVID Impacted 48.90 Operations 17.40 12.90 9.90 Q3FY20 Q4FY20 Q1FY21 Q2FY21 Q3FY21 9MFY20 9MFY21 FY19 FY20 FY21E Sequentially achieving over Volume fo
Slide 13: Capex Plan
CAPEX PLAN Current Annual Capacity is 90 Mn Meters The Board has directed the management team to explore various opportunities to FY21 volumes to cross 75 Mn Meters enhance capacities and markets Sequentially, new normal quarterly run-rate of over 20 Mn Meters 12
Slide 14: Q3 & 9MFY21 Consolidated Financial Performance
Q3 & 9MFY21 CONSOLIDATED FINANCIAL PERFORMANCE Particulars (Rs. Crs) Q3FY21 Q3FY20 YOY% Q2FY21 QOQ% 9MFY21 9MFY20 YOY% FY20 Revenue from Operations 783 637 714 1,829 1,712 2,080 Other operating Income 9 0 10 24 30 55 Total Income 792 637 24% 724 9% 1,852 1,743 6% 2,135 Cost of Material 398 353 365 9
Slide 15: Consolidated Balance Sheet
CONSOLIDATED BALANCE SHEET Particulars (in Rs Crs) Sep’20 Mar’20 Particulars (in Rs. Crs) Sep'20 Mar'20 ASSETS EQUITY AND LIABILITIES Non-current assets Equity Share Capital 39 39 Property, Plant and Equipment 537 554 Other Equity 1,082 947 Capital work-in-Progress 7 6 Equity attributable to owners
Slide 16: Financial Ratio Trend
FINANCIAL RATIO TREND NET DEBT/EQUITY NET DEBT/EBITDA* EBIT/INTEREST* 0.37 1.8 14.3 0.30 1.4 0.19 0.8 6.6 5.0 3.7 0.06 0.2 FY18 FY19 FY20 H1FY21 FY18 FY19 FY20 H1FY21 FY18 FY19 FY20 H1FY21 *Annualized basis 15
Slide 17: Growing Focus on B2C Segment
GROWING FOCUS ON B2C SEGMENT 16
Slide 18: Growing Our Brands Through B2C & D2C
GROWING OUR BRANDS THROUGH B2C & D2C…. Leveraging Omni-channel & E-commerce distribution Building visibility through digital campaigns Strong Distribution Network Marketing through Licensed Brands Brand Building Initiatives Successful In-house brand promotion High quality product offerings across va
Slide 19: Growing Our Brands Through B2C & D2C
GROWING OUR BRANDS THROUGH B2C & D2C…. Focus Brand Promotion in US, Europe, Middle-East and India 18
Slide 20: Patents, Innovation & Technology - Licensed Brands
PATENTS, INNOVATION & TECHNOLOGY Licensed Brands 19
Slide 21: Brand Building Campaigns in Indian Market: Boutique Living
BRAND BUILDING CAMPAIGNS IN INDIAN MARKET ‘Boutique Living’ – An Aspirational Brand Living with the stars #UnfoldTheMoment Not just influencers but A list celebrities Bringing to life the core brand like Soha Ali Khan, Madhuri Dixit, Dia #GivingwithLiving initiative in proposition partnership with M
Slide 22: Brand Building Campaigns in Indian Market: Layers
BRAND BUILDING CAMPAIGNS IN INDIAN MARKET ‘Layers’ – A Value Driven Brand #DressUpYourHome #GharSeNewYear Launching the brand by identifying the core brand Keeping in mind the current market dynamic proposition 21
Slide 23: Advantage India
ADVANTAGE INDIA 22
Slide 24: Indian Home Textiles Industry Is Eyeing a Large 3x Opportunity
INDIAN HOME TEXTILES INDUSTRY IS EYEING A LARGE 3x OPPORTUNITY Home Textile Size of US market at Retail – $28bn of which Bed linen is $14bn i.e. 50% (Bed Linen shown graph below) FASHION, UTILITY AND INSTITUTIONAL SEGMENT IS A LARGE 3x OPPORTUNITY SIZE FOR INDIAN SUPPLIERS INSTITUTIONAL 1.5 ✓ Target
Slide 25: China + 1 Strategy Will Lead to Increased Capacity Utilization in India
CHINA + 1 STRATEGY WILL LEAD TO INCREASED CAPACITY UTILIZATION IN INDIA Top 5 Home Textiles Exporting Nations ROW China has 39% share in home textile exports with US$ 30% China 19 bn followed by India at 11% with US$ 5 bn 39% India with growth rate of 4%, has increased its world share from 9% to 11%
Slide 26: Expected Retail Consolidation in Developed Markets
EXPECTED RETAIL CONSOLIDATION IN DEVELOPED MARKETS Structural Shift Expect the Market to move to few large players due to strong balance sheet and increased capacities Consolidation Increased market share gain could be higher for larger players Reduced fragmentation Reduced fragmentation in end mark
Slide 27: India's Edge in the Global Home Textile Market
INDIA’S EDGE IN THE GLOBAL HOME TEXTILE MARKET Availability of RM Capability & Capacity Abundant availability of raw Both capability and capacity material – India is the available for growth world’s largest cotton producer Atmanirbhar Bharat Skilled labour Government’s push for Atmanirbhar Access to
Slide 28: Indo Count at a Glance
INDO COUNT AT A GLANCE 27
Slide 29: Overview
OVERVIEW Established in early 1990s and head-quartered in Mumbai, India, Indo Count Industries Limited is one of the leading Home Textile manufacturers with an extensive product range. The product portfolio spans across sheet sets, fashion bedding, utility bedding and institutional bedding. The manu
Slide 30: Products & Presence
PRODUCTS & PRESENCE PRODUCTS BED SHEETS UTILITY BEDDING FASHION BEDDING INSTITUTIONAL BEDDING Flat sheet Mattress pads Comforters & Duvets Basic white sheets Fitted sheet Protectors Shams & Decorative Pillows Shams & Pillows Pillowcases Pillows Quilts Bed skirts Down Alt Comforters Coverlets Duvet c
Slide 31: Integrated Bedding Solution Provider
INTEGRATED BEDDING SOLUTION PROVIDER Concept Procurement Spinning Weaving Dyeing Cutting Quality Branding Design of Cotton Cotton into Fabrics Processing & Assurance Marketing Sampling Yarn Printing Sewing & Promotion 30
Slide 32: Our Journey
OUR JOURNEY ICIL established Commencement of Spinning Operations Recognized by Walmart Corporation as “Giga Guru” amongst Global Top 20 suppliers 1990-91 Forayed into home textile by setting up 36 mn meters Launched “Layers” a value driven mass brand integrated capacity for Bed Linen 2020 2007 Launc
Slide 33: Sustainability Is Our DNA
SUSTAINABILITY IS OUR DNA 32
Slide 34: Sustainability Initiatives
SUSTAINABLITY INITIATIVES The programme aims at improving Associated with SAC (Sustainable Apparel awareness among the farmers to cultivate Coalition) through HIGG index tool. Two of our cotton in a more sustainable method. facilities at Gokul and Kagal have been certified In step with this mindset,
Slide 35: Stable & Sustainable
STABLE & SUSTAINABLE RESEARCH & INNOVATION Strong R&D and innovation capabilities to develop a value-added diversified product bouquet Fulfilling the unique customer requirements to help evolve as the preferred partner of choice FOCUS ON BRANDS Unrelenting focus on quality, reliability, and excellen
Slide 36: Awards & Accolades
AWARDS & ACCOLADES 35
Slide 37: Recognized by Walmart as Giga Guru Among Global Top 20 Suppliers
RECOGNIZED BY WALMART CORPORATION AS “GIGA GURU” AMONGST GLOBAL TOP 20 SUPPLIERS ✓ Indo Count has taken SMART goals for Green house gas emissions reduction in Gigaton project ✓ In Walmart’s Gigaton project, Indo Count has achieved a remarkable milestone and is recognized by Walmart Corporation as “G
Slide 38: Recognitions
RECOGNITIONS Texprocil Awards for 2018-19 Recognitions from Customers Winner of Gold Trophy Gold For the Highest export performance in Made Ups-Bed Linen/Bed Sheets/Quilts Awarded ‘Best Collaboration in Design & Product development’ by KOHL’s, a large retailer in the US Winner of Gold Trophy Gold Fo
Slide 39: CSR Initiatives
CSR INITIATIVES 38
Slide 40: CSR - Every Smile Counts
CSR - EVERY SMILE COUNTS EDUCATION • We developed and adopted multifaceted approach through E-learning to increase attendance and stimulate learning HEALTHCARE amongst students • Medical Vans reaching 100 rural villages around Kolhapur • Besides E-learning, various other initiatives include providin
Slide 41: 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 | Ms. Ami Parekh kklalpuria@indocount.com +91 77383 77756 | +91 808
Indo Count Industries — Q3 FY2021 Earnings Presentation on 6ix