Textiles company Indo Count Industries declares Q3FY22 result: 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 the recurrence of third wave of pandemic across our key geographies like US, UK and Europe, we are witnessing lower demand. The intensity in the current month continues and that is reflected in the demand projections shared by our customers While there may be some short-term challenges, we remain positive about the demand scenario in the long run on the back of China + 1 strategy, the US prohibition on Xinjiang cotton, and government steps to support the Indian home textile export market Q3FY22 sales volume at 21.1 Mn meters and 9MFY22 sales volume at 58.1 Mn meters The current sales profile has seen a shift to better product mix, and we expect to achieve revenue guidance of approx. Rs. 3,000 Crs on an overall basis Strongly moving towards B2C and D2C segment through high quality product offerings across varied price points, building visibility through digital campaigns and leveraging omnichannel & e-commerce distribution Focus on Brand Promotion in US, UK, Middle-East and India through 10 active brands Innovation and technological capabilities along with licensed brands, patents, trademarks will further strengthen brand offerings 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 innovative designs, products and additional capacities. While the short-term headwinds may persist, we continue to be positive on the growth opportunities for the Indian home textile industry on a long-term basis.” Result PDF
Conference Call with Indo Count Industries Management and Analysts on Q2FY22 Performance and Outlook. Listen to the full earnings transcript.
HIGHLIGHTS Despite challenges on increase in overall input costs, rising freight costs, unavailability of shipping containers and longer transit duration and Increase in Working capital due to investment in supply chain, the Company has been able to achieve Highest ever half yearly REVENUE and EBITDA The Company is optimistic to achieve revenue of Rs.3,200+ Crores Strongly moving towards B2C and D2C segment through high quality product offerings across varied price points, building visibility through digital campaigns and leveraging omni-channel & e-commerce distribution Focus on Brand Promotion in US, UK, Middle-East and India through 10 active brands Innovation and technological capabilities along with licensed brands, patents, trademarks will further strengthen brand offerings Commenting on the results, Mr. Anil Kumar Jain, Executive Chairman said, “The Company’s intrinsic strength has been demonstrated by its operational performance in conjunction with consistent cash accruals. The unprecedented supply chain challenges have been impacting the industry pervasively. At Indo Count, we have been able to arrest cost inflation through various measures and our dynamic approach is helping the Company to progress in response to market developments and pave the way for future growth.” Result PDF