Indo Count Industries Limited · NSE:ICIL
Indo Count Industries — FY2018 Earnings Presentation
40 slides from Indo Count Industries's earnings presentation, May 2018
Slide 1: Cover letter to stock exchanges
s" May, 2018 The National Stock Exchange of India Limited BSE Limited Listing Department, Department of Corporate Services Exchange Plaza, Bandra Kurla Complex, Floor 25, Phiroze Jeejeebhoy Towers Bandra (East) Dalal Street, Mumbai - 400051 Mumbai - 400 001 Company Symbol: ICIL Scrip Code No.: 52101
Slide 2: Investor Presentation – FY18
Investor Presentation – FY18 May 2018
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 sec
Slide 4: Chairman’s Message
Chairman’s Message Commenting on the results, Mr. Anil Kumar Jain, Executive Chairman, said, “FY18 has been a challenging year for the industry on account of multiple headwinds. However, our sales volume for H2FY18 has been better and we expect this trend to continue going forward. Our customer cent
Slide 5: Revenue Assessment for FY18
Revenue Assessment for FY18 Based to 100 100.0 -3.5 -3.5 -2.0 91.0 Total Revenue Spinning Currency Impact Impact of Estimated for FY18 Duty/Incentive Revenue Revenue for Impact of in- Impact of Impact of FY18 house Strengthening Government Spinning Rupee Incentives due Indian transfer on to change i
Slide 6: Standalone Key Financial Indicators Y-o-Y
Standalone Key Financial Indicators Y-o-Y REVENUE (RS.CRS) EBITDA (RS.CRS) 1,808 2,085 265 419 FY18 FY17 FY18 FY17 EBIT (RS.CRS) PAT (RS.CRS) 235 388 131 228 FY18 FY17 FY18 FY17 CASH PAT (RS.CRS) NET DEBT/EQUITY (X) 182 312 0.38 0.39 FY18 FY17 FY18 FY17 ROCE (%) ROE (%) 18% 34% 14% 28% FY18 FY17 FY1
Slide 7: Standalone Profit & Loss Statement
Standalone Profit & Loss Statement Particular (Rs. Crs) FY18 FY17 Total Revenue 1,808 2,085 EBITDA 265 419 EBITDA Margin % 14.7% 20.1% Depreciation 30 31 EBIT 235 388 EBIT Margin % 13.0% 18.6% Finance Charges 33 39 Profit before Tax 202 348 PBT Margin % 11.2% 16.7% Tax Expense 71 120 Profit after Ta
Slide 8: Consolidated Key Financial Indicators Y-o-Y
Consolidated Key Financial Indicators Y-o-Y REVENUE (RS.CRS) EBITDA (RS.CRS) 1,958 2,258 262 428 FY18 FY17 FY18 FY17 EBIT (RS.CRS) PAT (RS.CRS) 229 395 125 232 FY18 FY17 FY18 FY17 CASH PAT (RS.CRS) NET DEBT/EQUITY (X) 176 319 0.38 0.42 FY18 FY17 FY18 FY17 ROCE (%) ROE (%) 17% 32% 13% 27% FY18 FY17 F
Slide 9: Consolidated Profit & Loss Statement
Consolidated Profit & Loss Statement Particular (Rs. Crs) FY18 FY17 Total Revenue 1,958 2,258 EBITDA 262 428 EBITDA Margin % 13.4% 19.0% Depreciation 33 33 EBIT 229 395 EBIT Margin % 11.7% 17.5% Finance Charges 35 42 Profit before Tax 194 353 PBT Margin % 9.9% 15.6% Tax Expense 69 121 Profit after T
Slide 10: Consolidated Balance Sheet
Consolidated Balance Sheet Particular (Rs. Crs) Mar’18 Mar’17 Fixed Assets (Incl. CWIP) 564 543 Other Non-Current Assets 7 6 Inventories 591 472 Trade Receivables 287 311 Cash and cash equivalents 16 9 Other Current Assets 234 183 TOTAL 1,699 1,524 Equity Share Capital 39 39 Reserves & Surplus 924 8
Slide 11: Areas impacted in FY18
Areas impacted in FY18 1 2 3 4 5 Raw material Power & fuel Strengthening GST impact De-stocking by costs were charges, job of Rupee and revision of few large volatile; going work charges Government retailers forward and other incentives affected expect cotton expenses were Revenues prices to be high
Slide 12: Phase II Capex operational by end FY20
Phase II Capex operational by end FY20 Project Location Land for the same has been identified and is pending for government notification. Commissioning Commercialization will commence by end of FY20 11
Slide 13: Outlook for FY2019 and beyond
Outlook for FY2019 and beyond 01 02 03 Product development Improving operational Global reach Focus on Bed Linen in the Home efficiency Establish relationship with Textiles sphere Moving towards overall marquee global customers Focus on value-added products sustainability Extend focus from
Slide 14: Strong Brands in the Global Home Textile Industry
Strong Brands in the Global Home Textile Industry 13
Slide 15: 26 years of our Journey
26 years of our Journey 1990-91 2007 2008 2011 2012 2014-15 2017 ICIL established Forayed into Acquired Established Bed Linen Established Enhanced home textile by Pranavaditya showroom, capacity showroom and capacity to 90 mn Commencement setting up 36 mn Spinning Mills Design Studio and increased t
Slide 16: Our competencies and differentiators
Our competencies and differentiators 01 02 03 Strong domain Operationally Global player expertise efficient Top market player with a Customer-centricity End-to-end operations wide product basket starting from product Wide and innovative product development, spinning, Established business w
Slide 17: New Brand Launched in USA: ‘HEIRLOOMS OF INDIA’
New Brand Launched in USA: ‘HEIRLOOMS OF INDIA’ 16
Slide 18: New Brand Launched in USA: ‘BOUTIQUE LIVING COASTAL’
New Brand Launched in USA: ‘BOUTIQUE LIVING COASTAL’ 17
Slide 19: New Brand Launched in USA: ‘ATLAS’
New Brand Launched in USA: ‘ATLAS’ 18
Slide 20: Licensed Lifestyle Brands
Licensed Lifestyle Brands New Brand Launched in USA: ‘MORRIS & CO.’ 19
Slide 21: Own Lifestyle Brands
Own Lifestyle Brands (\@ Indo Count COMPLETE COMFORT A Wy Ge BOUTIQUE REVIVAL PURE NEW YORK CITY COLLECTION LIVING — 20
Slide 22: Licensed Lifestyle Brands
Licensed Lifestyle Brands 21
Slide 23: Aspirational Brand in India
Aspirational Brand in India Indo Count has a presence across 21 Indian States, achieving sales across 96 cities with 465 MBOs and 8 LFS Online foray to widen customer base: www.boutiquelivingindia.com 22
Slide 24: Global presence
Global presence India USA UK Australia UAE Headquartered in Showroom and Showroom, design Showroom and Opened office in Mumbai design studio in studio and design studio in Dubai to cater to New York warehouse in Melbourne global trade Manufacturing Manchester facilities in Warehouse for Kolhapur, di
Slide 25: Industry perspective
Indo Count COMPLETE COMFORT Industry perspective 24
Slide 26: Global Home Textile Market Overview
Global Home Textile Market Overview Global Home Textile Market ($bn) Global Home Textile Market Composition +3.5% CAGR 130 Bath 110 Linen, 20% Bed Linen, 45% Others, 35% 2015 2021e Bed Linen & Bed Spread: Expected to grow at a highest CAGR of 4.4% to reach US$60bn by 2020 Source: Industry Report 25
Slide 27: Asia Pacific fastest growing market in Global Home Textile
Asia Pacific fastest growing market in Global Home Textile Global Home Textile Market Asia Pacific Largest home textile market in the world Region-wise share Accounts to 44% of the global home textile market One of the most dominant producer and 7% consumer of home textile 23% 44% China Larg
Slide 28: USA textiles imports
USA textiles imports Cotton sheets Pillow cases Cotton +5% +5% +11% bedspreads 688 719 172 181 531 478 -6% -2% +14% +3% -4% +16% 309 291 72 71 203 231 48 46 151 155 116 134 India China Pakistan India China Pakistan India China Pakistan India’s total contribution (in million $) US – Import of Cotton
Slide 29: India’s edge in the home textiles market
India’s edge in the home textiles market Contribution to India’s Steady capability manufacturing and capacity production enhancement Share in country’s export Growing global respect for earnings thereby increasing its Indian products; dependable contribution to India’s GDP long term partner India’s
Slide 30: India’s Consumption Basket
India’s Consumption Basket Domestic Home Textile Market (Rs.in Crs) Category (Rs. CAGR 2011 2016 2021(E) In Crs) (2011-21) 40,800 Bed Linen 8,965 13,170 19,350 8.0% +8% Towels 3,320 4,840 7,060 8.0% 27,360 Curtains 1,850 2,975 4,790 10.0% 18,400 Blankets 1,465 2,040 2,850 7.0% Upholstery 1,190 1,915
Slide 31: Incentive and GST update
Incentive and GST update Incentive Input Tax Credit (ITC) Current Duty Drawback - 2% GST Yes 0% ROSL - 2.2% MEIS - 4% Overall, revision broadly neutral on company’s profitability compared to pre-GST. 30
Slide 32: Increasing trend in production of raw cotton in India
Increasing trend in production of raw cotton in India from FY2007 to FY2018E (in million bales) 39.8 40.0 38.6 37.7 35.3 35.6 35.1 33.9 33.8 35.0 30.7 30.5 29.0 30.0 28.0 25.0 20.0 15.0 10.0 5.0 0.0 FY07 FY08 FY09 FY10 FY11 FY12 FY13 FY14 FY15 FY16 FY17 FY18E Source: The Cotton Corporation of India
Slide 33: Cotton and Currency Movement
Cotton and Currency Movement Rs. per candy Cotton Prices USD/INR 43,500 68.5 68.0 42,500 67.5 41,500 67.0 66.5 40,500 66.0 65.5 39,500 65.0 38,500 64.5 64.0 37,500 63.5 36,500 63.0 Jan-17 Apr-17 Jul-17 Oct-17 Jan-18 Apr-18 Jan-17 Apr-17 Jul-17 Oct-17 Jan-18 Apr-18 1 candy = 356kgs Source: Bloomberg
Slide 34: 10 year fruitful journey to a Leadership position
10 year fruitful journey to a Leadership position Winner of Gold Trophy 2016-17 Gold from Texprocil in 2016-17 2014-15 2015-16 Silver Silver 2009-10 2010-11 2011-12 2012-13 2013-14 Bronze Bronze Bronze Bronze Bronze 33
Slide 35: Received Gold trophy from Texprocil
Received Gold trophy from Texprocil Our Chairman Mr. Anil Kumar Jain, receiving gold trophy presented by Texprocil for the highest export in Bed linen for the year 2016-17 at the hands of Textile Commissioner, Dr. Kavita Gupta 34
Slide 36: Awards and recognitions
Awards and recognitions Mr. Mohit Jain, Managing Director, was honoured with one of “India’s Top 40 under Forty”, a prestigious celebration of India’s best business leaders, entrepreneurs and professionals under the age of 40. Economic Times, India’s leading business newspaper, in partnership with c
Slide 37: CSR: At Indo Count ‘Every smile counts’
CSR: At Indo Count ‘Every smile counts’ WATER & SANITATION EDUCATION HEALTHCARE WOMEN EMPOWERMENT 46 pure water units and • Implemented e-learning • 4 Health on Wheels three RO systems installed programme linked to state reached 96 distant villages, Started a Skill in schools and remote curricul
Slide 38: The New Age of Sustainability and LEEDS Certification
The New Age of Sustainability and LEEDS Certification LEEDS Certified by US Green Building Council At Indo Count we firmly believe in preserving our planet for our community. Sustainable Innovations to incorporate improved features which excite today’s customers and result in improved solutions
Slide 39: About us
About us Indo Count Industries Ltd (ICIL) (part of S&P BSE 500), 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
Slide 40: Investor Contact
Investor Contact For further information please contact: Indo Count Industries Limited CIN: L72200PN1988PLC068972 Mr. K.R. Lalpuria, Executive Director kklalpuria@indocount.com Mr. Dilip Ghorawat, Chief Financial Officer dilip.ghorawat@indocount.com Ms. Ruchita Maheshwari, Sr. Manager Investor Relat