Indo Count Reports Strong Q2, Unveils Strategic Transformation

Indo Count Industries Limited has reported its unaudited financial results for Q2 and H1 of FY25, ending September 30, 2024. The company, marking the launch of “Indo Count 2.0 – An Era of Transformation,” is embarking on a new phase focused on strategic expansion, diversification, and sustainability.

Key Highlights of Indo Count 2.0

• Core Business Growth: Indo Count’s sheet business continues to show year-on-year growth, maximizing available capacity.
• Expanding Utility Segment: Through strategic acquisitions, the utility segment has accelerated, positioning Indo Count to capture new market opportunities with projected additional revenue of USD 85 million over the next 2-3 years.
• Branded Business Development: The acquisition of the Wamsutta brand, alongside partnerships with ICONIX International for Fieldcrest and Waverly, aims to elevate Indo Count’s market presence, boost revenue, and enhance margins.
• Focus on Domestic Market: Indo Count is deepening the reach of its domestic brands, Boutique Living and Layers, to meet growing demand in India.

Consolidated Financial Performance
The company’s Q2 FY25 total income reached Rs 1,045 crore, a 1% increase year-over-year, while H1 FY25 total income grew by 12% to Rs 1,995 crore. Indo Count’s Q2 sales volume totaled 27.8 million meters, with H1 reaching 53.1 million meters. EBITDA margins were impacted by upfront costs related to new acquisitions and infrastructure, with a revised margin guidance of 15-16% as the company anticipates returns on these investments in the coming 12-18 months.

Balance Sheet Overview
As of September 30, 2024, Indo Count’s net worth stood at Rs 2,198 crore, while net debt increased to Rs 1,045 crore, bringing the debt-to-equity ratio to 0.48 from 0.32 in March 2024.

Commenting on the results, Anil Kumar Jain, Executive Chairman said, “We are pleased to report that our H1 FY25 results have been encouraging, showcasing strong momentum across our business. While supply chain challenges persist, we remain confident in our growth trajectory. Through our strategic acquisitions, we have successfully established a manufacturing footprint in the US, marking the beginning of a new journey into the utility bedding segment. These opportunities are expected to drive long-term growth and will continue to yield positive results in the years to come. With our proactive acquisitions and strategic investments, we are confident in our ability to achieve remarkable success in coming years.”

Sustainability and Recognition
Indo Count’s commitment to sustainability is underscored by its recent awards, including:

• Vastra Ratna Award from TEXPROCIL, recognizing Executive Chairman Mr. Anil Kumar Jain for promoting excellence in Indian cotton textiles.
• Home Excellence Award (HFPA, New York) for expanding business sustainably.
• Best Environment-Friendly Initiative and Best Wastewater Treatment Initiative of 2024, honoring its CSR efforts and sustainable practices.

Further sustainability efforts include solar power investments at the Bhilad unit, which operates on 90% renewable energy, and water conservation initiatives reducing fresh water usage by 25%.

Indo Count continues to integrate sustainability into its strategic and operational frameworks, further cementing its position as a leader in the global home textile industry.