Indo Count Industries Ltd. share price target

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We had hosted Investor Conference on 29th & 30th September 2021 where 15 companies participated at our Arihant Rising Star's Virtual Summit. Key takeaways from the conference are as follows:...

Higher realization and export incentives aid growth

ICIL is an integrated bedding solution provider, boasting a capacity of 90 million metre per annum of dyeing/processing and cutting /sewing It exports to nearly 54 countries with US being the prime market (~75% of revenues and commanding ~20%+ market share in bed sheets)...

IT notice a non-event; Xinjiang cotton ban now official

Continuation of export incentives a major boost

Turnaround imminent; margin profile set to improve

EBITDA declined 17% YoY to INR1,139m, with the margin contracting 270bp YoY to 12.1%. In 2HFY19, we expect revenue growth of 11% YoY, with margin contraction of 100bp. volume growth of 9% YoY in 2QFY19 and 15% YoY in 1HFY19. However, revenue growth and profitability were impacted in 1HFY19 on account of currency volatility (hedged at exchange rate lower than realized translation), product mix changes and raw material (RM) cost pressure. Going forward too, RM cost pressure (cotton prices at INR46k/candy v/s expectation of MSP level prices of 43-44k/candy) and currency volatility are likely to persist. Due to the strong miss on earnings (45%) in 2QFY19 and the likely gross margins pressure in 2HFY19, we cut our revenue/earnings estimates by 3%/24% for FY19 and by 5%/24% for FY20. We also note that strong volumes have not translated into robust revenue growth and operating performance.

6 August 2018 ICNTs revenue increased 5.8% YoY to INR4,569m (est. EBITDA margin shrank 110bp YoY to 14% (est. of 14.7%), as employee expense increased 60bp YoY to 7.1% of net sales and other expenses rose 50bp YoY to 24.1% of net sales. Gross margin was flat YoY at 49.9%. EBITDA declined marginally by 2% YoY to INR641m (in-line). Adj. PAT declined 10% YoY to INR288m (est. of INR309m) in 1QFY19, primarily on account of a higher-than-anticipated tax rate of 38.9%, as against 35.