Stock Analysis

Indo Count Industries Limited Presentation

Introduction:

Indo Count Industries Limited recently presented its financial results for Q4 and FY23. This blog post highlights the key achievements, capacity expansions, capital allocation, and future projections outlined in the presentation.

Key Highlights of FY23:

  1. Leading HT Player:

Indo Count Industries Limited maintained its position as the largest Home Textile (HT) player, achieving a volume of 74.7 million meters.

  1. Revenue Growth:

The company achieved a revenue CAGR of 12% from FY19 to FY23. Value-added businesses contributed significantly to the revenue in FY23.

  1. Return Ratios and Awards:

Impressive return ratios were showcased, including 15.4% ROE and 17.7% ROCE. The company received the CITI Birla Sustainability Award and was recognized as a FEMINA POWER BRAND.

  1. Sequential Volume Performance:

Consistent sequential volume performance was observed throughout FY23.

Capacity Creation and Future Projections:

  1. Bhilad Unit Integration and Brownfield Expansion:

Successful integration of the Bhilad unit and expansion of capacity to 108 million meters.

  1. Cut & Sew Facilities and TOB Plant:

Addition of cut & sew facilities and a modern TOB plant.

  1. Spinning Capacity Expansion:

Near completion of the spinning capacity expansion at Pranavaditya Spinning Mills (PSML).

  1. Volume Guidance for FY24:

The company aims to achieve a volume range of 85-90 million meters in FY24.

Financials and Capital Allocation:

  1. Net Cash Flow from Operations:

Reported net cash flow from operations of Rs. 767 crores.

  1. Strategic Capital Allocation:

Focused on prudent capital allocation and reducing debt.

  1. Debt Reduction:

Net debt reduced from Rs. 900 crores in FY22 to Rs. 589 crores in FY23.

  1. Revenue Growth Potential:

Targeting a two-fold increase in revenue through improved capacity utilization.

Annual Retail Sales and Sales Growth:

Positive Projections for Retail Sales:

The National Retail Federation (NRF) projects retail sales to grow between 4% and 6% in 2023, reaching $5.13 trillion to $5.23 trillion.

Conclusion:

Indo Count Industries Limited’s investor presentation highlighted impressive financial results, achievements, and future projections. The company’s focus on value-added businesses, capacity expansion, capital allocation, and debt reduction positions it well for future growth. With positive projections for retail sales, Indo Count Industries Limited is poised to continue its success in the home textile industry.