Indo Count Industries Ltd (ICIL) is the third largest exporter of bed linen from India and the fourth largest bed sheet exporter to the US. Indo Count currently supplies a wide range of bed linen to global retail chains across 49 countries in five continents.
ICIL is a net exporter, with about 70 per cent of its clientele in the international markets. ICIL exports account for about 90 per cent of its revenue (about 70 per cent of exports to the US). The company has around 20 per cent share in the country’s bed linen exports to the US.
The contribution of export revenue is increasing at a CAGR of 33 per cent in FY11 to FY15. The revenue share of bed linen is increased to Rs.1,382 croore from Rs.1,029 crore, a growth of 39 per cent in FY15. The growth in revenue is mainly attributed to home textile segment on the back of higher realisation and better product mix.
Indo Count recorded operating profit margins with an increase of 19 per cent to Rs.306.3 crore from Rs.248.8 crore during FY14-FY15. ICIL has increased its bed sheet manufacturing capacity from 3.6 crore metre in FY07 to 6.8 crore metre by FY15. On the back of lower raw material prices, favourable product mix, improving cost efficiency and economies of scale, we initiate coverage on Indo Count with a ‘buy’ rating.
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