Indo Count Industries Ltd — Interim / Quarterly Report 2018

Nov 3, 2018

3rd November, 2018

The National Stock Exchange of India Ltd.	BSELimited
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: ICll	Scrip Code No.: 521016

Subiect: Press Release Q2 & H1FY19 Results

Please find enclosed herewith a copy of Press Release with respect to Unaudited Standalone Financial Results for the quarter and half year ended so" September, 2018.

Kindly take the above on record.

Thanking you,

Yours faithfully,

For Indo Count Industries Limited

~ Amruta Avasare Company Secretary ACS No.: 18844

Encl:A/a

INDO COUNT INDUSTRIES LIMITED

Head Office: 301, Arcadia, III Floor, Nariman Point, Mumbai - 400021 Maharashtra, India IT 91 2243419500 IF 9122 2282 3098 Marketing Office: 25, Vardhaman Industrial Complex, Gokul Nagar, Thane (W) - 400601 Maharashtra, India IT 91 22 41511800 1F 91 22 2172 0121 Home Textile Division: T3, Kagal- Hatkanangale Five Star, MIDC Ind. Area, Kolhapur - 416216 Maharashtra, India 1T 91231 662 7900 IF 912316627979 Spinning Division: 01, MIDC, Gokul Shirgaon, Kohlapur - 416234 Maharashtra, IndialT 91231268 7400 IF 912312672161 Regd. Office: Office No.1, Plot No.266, Village Alte, Kumbhoj Road, Taluka Hatkanangale, Dist. Kolhapur - 416109 Maharashtra, India IT 91 230 32929331 F 91 230 2483275 CIN L72200PN1988PLC068972I E info(.Qlindocount.com1W www.indocount.com

P R E S S R E L E A S E: 3rd NOVEMBER 2018, MUMBAI

INDO COUNT INDUSTRIES LTD. H1FY19 RESULTS

Indo Count Industries Ltd. reported its un-audited standalone financial results for the quarter and half year ended 30th September 2018.

MANAGEMENT PERSPECTIVE

Commenting on the results, Mr. Anil Kumar Jain, Executive Chairman, said, "FY19 has been a better year for the Indian Home textile industry, with growth rates and economic stability improving in the USA and EU, our biggest markets.

Going forward, we expect to increase our capacity utilization led by improving product mix across geographies.

With increasing customer base and growing sales, we are confident to strengthen Indo Count Brand with its large and marquee global clientele."

Revenues

Total Revenues stood at Rs. 943 crores for H1FY19 as against Rs. 925 crores for H1FY18. Revenue growth would have been higher however it was impacted on account of lower Government incentives, lower currency realization and change in product mix.

Sales volume stood at 30.2 mn metres for H1FY19 versus 26.3 mn metres in H1FY18, registering a growth of 15% on YoY basis. Sales volume growth was 10% on QoQ basis from 14.4 mn metres in Q1FY19 to 15.8 mn metres in Q2FY19.

We are confident to meet our guidance of Sales volume of 58-60 mn metres for FY19.

EBIDTA

For H1FY19 the EBITDA was reported at Rs. 114 crores versus Rs. 136 crores for H1FY18. The margin was reported at 12.1% in H1FY19 versus 14.8% in H1FY18.

EBITDA was impacted by increased raw material costs, higher energy, employee and job work expenses in addition to low leverage on account of Revenue impact as detailed above.

Profit after Tax

Profit after tax for H1FY19 was Rs. 51 crores as against Rs. 68 crores in H1FY18 while the margin was 5.4% for H1FY19 versus 7.3% in H1FY18.

The EPS for H1FY19 was Rs. 2.56 per equity share as against Rs. 3.44 per equity share reported in H1FY18

Domestic Business

We are witnessing a positive acceptance in our domestic brands, designs and promotions.

As on 30th September 2018, our aspirational brand "Boutique Living" is present in more than 483 Multi Brand Outlets (MBOs) and 8 Large Format Stores (LFS). The brand expanded its footprint to 96 cities and present across 23 Indian states.

Result Highlights

Particulars – Standalone (Rs. Crore except: EPS, Net Debt: Equity figures)	H1FY19	H1FY18	FY18
Revenue	943	925	1,808
EBIDTA	114	136	265
Depreciation	16	15	30
Finance cost	17	17	33
PBT	81	104	202
Income Tax	30	36	71
Profit After Tax	51	68	131
EPS (on Face Value of Rs. 2/- each)	2.56	3.44	6.64
Net Debt: Equity (x)	0.37	0.24	0.38

A BRIEF INSIGHT INTO INDO COUNT INDUSTRIES LIMITED

CIN: L72200PN1988PLC068972

Indo Count Industries Ltd (ICIL) (part of S&P BSE 500), is one of India's largest Home Texti le 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 leadershi p, 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 capacity is 90 million meters.

The Company's product comprises the following: -

• Bed Sheets: Flat sheet, fitted sheet and pillow cases
• Fashion Bedding: Comforters, bed in bag, quilts and coverlets, decorative pillows, etc.
• Utility Bedding: mattress pads, protectors, comforters filled with poly fibre
• Institutional Linen: Basic white bedding, duvet covers and shams; caters to hotels, hospitals and others

The Company has launched the following innovated products: -

Infinity Cotton: Blend of a few finest cotton varieties in the world resulting in superior yarn

Thermal Balance: Balances temperature between body and bed to deliver superior sleep characteristics

The Company has recently launched 3 new Brands namely, Heirlooms of India, ATLAS and Morris & Co. in the Fashion Bedding segment in USA. The company has also launched a utility Brand by the name of Whole Comfort in the Global markets.

ICIL is one of the largest manufacturer and exporter of bed linen from India; amongst the top three bed sheet suppliers in USA and Twelfth largest global home textiles supplier to USA. ICIL has a strong global clientele and exports to more than 54 countries. Major revenues are derived from USA, the Company's largest market; its other prominent markets comprise UK, Canada, Europe, MENA and Australia etc. The Compa ny enjoys long-term relationships with large global marquee retailers.

ICIL has been honored with the prestigious "VASUNDHARA AWARD" from the Government of Maharashtra. The Company was adjudged as the 2nd Best Company in the entire state of Maharashtra among all the large units. The award is on account of the companies' contribution towards commitment & promotion of Environment, Energy Conservation / Natural Resources & Social / Welfare Activities in Mahar ashtra.

ICRA has reaffirmed the credit rating as ICRA AA- (Double AA-) for Company's Long-Term Bank Facilities and ICRA A1+" for Short Term Bank facilities. CARE has reaffirmed credit rating to CARE AA (Double AA) for Company's Long -Term Bank Facilities and CARE A1+ 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 abou t plans and objectives, the progress and result s of research and development, potential project characteristics, pro ject 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.

For further information, please contact:

K R Lalpuria Executive Director Indo Count Industries Ltd Tel: +91 22 43419500 Email: kklalpuria@indocount.com Website: www.indocount.com	K. Muralidharan Chief Financial Officer AnoopPoojari/ Suraj Digawalekar Indo Count Industries Ltd Tel: +91 22 43419500 CDR-India Email: k.muralidharan@indocount.com Website: www.indocount.com Email: anoop@cdr-india.com
Shogun Jain Group Account Head Strategic Growth Advisors Private Limited Tel: +91 22 6114 6619 Email: shogun.jain@sgapl.net Website: www.sgapl.net	Neha Shroff Account Manager Strategic Growth Advisors Private Limited Tel: +91 22 6114 6603 CDR-India Email: neha.shroff@sgapl.net Website: www.sgapl.net