Indo Count Industries Ltd — Earnings Release 2022

Feb 7, 2022

February 7, 2022

The National Stock Exchange of India Ltd.	SSELimited
Listing Department	Department of Corporate Services
Exchange Plaza,	Floor 25, Phiroze Jeejeebhoy Towers,
Bandra Kurla Complex, Bandra (East),	Dalal Street,
Mumbai - 400 051	Mumbai - 400 001
Company Symbol: ICIL	Scrip Code No.: 521016

Subject: Press Release on Q3 & 9M EY22Results

Please find enclosed herewith a copy of Press Release dated February 7, 2022 on Q3 & 9M FY22 Results.

Kindly take the above on record.

Thanking you,

Yours faithfully,

For Indo Count Industries Limited

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Amruta Avasare Company Secretary ACS No.: 18844

Encl.: A/a

Indo Count Industries Ltd

Head Office 301. Arcadia. 3rd Floor, Nariman Point, Mumbai - 400 021, Maharashtra, India; T 0224341 9500. F 0222282 3098 Markellng Office: Dosti Imperia, 2nd floor, Manpada, Ghodbunder Road, Thane (w) - 400 607, Maharashtra, India; T 0224151 1800, F. 022 2172 0121 Home TexUleDivision T3. Kagal- Hatkanangale Five Star, MIDC Ind. Area, Kolhapur - 416216, Maharashtra, India; T 0231 6627900, F 0231 6627979 Splnnrng Divisron D1, MIDC. Gokul Shirgaon, Kolhapur - 416234, Maharashtra, ·India;T: 02312687400, F 02312672161 Regd. Office: Office No.1, Plot No. 266, Village Alte, Kumbhoj Road,Taluka Hatkanangale, DiS!. Kolhapur - 416 109, Maharashtra, India; T 02302463100/2461929 CIN L72200PN1988PLC068972, E. info@indocount.com, W: www.indocoun!.com

~ ;:Fl

Indo Count Industries Limited

Mumbai, February 7 th , 2022

Indo Count Industries Limited (BSE: 521016) (NSE: ICIL), announced its un-audited financial results for the third quarter and nine months ended 31st December 2021

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."

Particulars (Rs. In Crs)	Q3FY22	Q3FY21	YoY%	9MFY22	9MFY21	YoY%
Total Income	787	792	-1%	2,292	1,852	24%
EBITDA	146	143	2%	442	309	43%
EBITDA Margin (%)	18.6%	18.0%	60 bps	19.3%	16.7%	260 bps

Consolidated Financial Performance

• 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

Complete Comfort Indo Count Industries Limited

Strengthening Product Mix

% Contribution to Revenue	9M FY22	FY21
Branded Business	14%	10%
Fashion/Utility/ Institutional	19%	15%
E-commerce business	6%	4%
India Home Textile Business	2%	1%

• 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

Awards & Accolades

Global Sustainability Award

Indo Count's contribution towards various sustainability initiatives like Emissions reduction, Water Conservation, Utilities optimization, Power consumption optimization etc were reviewed and based on our performance across other international platforms like HIGG Index, CDP etc we have received this award

CII Water Award

Indo Count has received CII National Awards for Excellence for its contribution in respect to improving water use efficiency and integrated approach in wastewater management

Sustainability

We have signed the United Nations Global Compact and are committed to integrate UNGC's Principles into our organizational culture and ensure building a greener sustainable future

Through CDP, we have been disclosing our environmental impacts, along with measures to reduce our ecological footprints for the last 3 years. Indo Count has achieved score B this year which is above the global textile average

Indo Count has taken Scientific approach in evaluating & setting GHG emission reduction through collaboration with SBTi

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Indo Count Industries Limited

Additional Capacity to drive next leg of growth

• With the growing demand environment, the next leg of growth will be driven by:
• Brownfield capacity expansion of 18 million metres at the current Kolhapur facility
• Greenfield capacity addition of 45 million metres at the Vapi plant acquired from GHCL
• GHCL received shareholders approval for Transfer of Home Textile business of GHCL by the way of slump sale on a 'going concern' basis to Indo Count Industries Ltd.
• With addition of almost 50% new capacity, Indo Count becomes the largest Home Textile Bedding company, globally, with annual capacity of approximately 153 million meters
• Addition to a whole new avenue of customer base which is untapped, thereby leading to gain in global market share
• Leverage joint capabilities of Design, Innovation and Products to a wider spectrum of customers
• De-risking manufacturing facilities with twin state geographical diversity
• Potential addition of Rs.1300 - 1500 Crores p.a. to the top line of the Company over a period

Indo Count Industries Limited

About Indo Count Industries Ltd.

Indo Count Industries Ltd (ICIL), is one of India's largest Home Textile manufacturer. Mr. Anil Kumar Jain, Executive Chairman, has been ranked 10th amongst the India's Best Top 100 CEO's 2017 by Business Today. Under his leadership, the Company has focused on some of the world's finest fashion, institutional and utility bedding & sheets and has built significant presence across the globe. Over the years, the Company has successfully carved out a niche for itself and has become a total bedding resource. The company's current annual capacity is 90 million metres.

CARE's credit rating is CARE A+ (Single A Plus; Outlook: Positive) for Company's Long-Term Bank Facilities and CARE A1+ (A One plus) for Short Term Bank Facilities. ICRA's credit rating is ICRA AA- (Double A minus; Outlook Stable) for Company's Long-Term Bank Facilities and ICRA A1+ (A one plus) for Short Term Bank facilities.

Safe Harbor Statement

Statements in this document relating to future status, events, or circumstances, including but not limited to statements about plans and objectives, the progress and results of research and development, potential project characteristics, project potential and target dates for project related issues are forward-looking statements based on estimates and the anticipated effects of future events on current and developing circumstances. Such statements are subject to numerous risks and uncertainties and are not necessarily predictive of future results. Actual results may differ materially from those anticipated in the forward-looking statements. The company assumes no obligation to update forward-looking statements to reflect actual results changed assumptions or other factors.