Q2 2025 Indo Count Industries Ltd Earnings Call Transcript
Key Points
- Indo Count Industries Ltd (BOM:521016) is experiencing a positive shift in the US retail market, with increased retail sales and rising imports of bed linen from India.
- The company is embarking on a transformative phase, 'Version 2.0', focusing on sustainable long-term growth through strategic investments in a diversified product portfolio and premium segments.
- Recent acquisitions in the US utility bedding market, including Fit Inc USA and Modern Home Textile, are expected to significantly expand the company's manufacturing footprint and revenue potential.
- Indo Count Industries Ltd (BOM:521016) has been recognized with several prestigious awards for excellence and sustainability, highlighting its commitment to corporate social responsibility.
- The company anticipates stable domestic cotton prices, which will support operations and help manage input costs effectively.
- Supply chain issues have led to increased inventory levels and deferred shipments, impacting sales volumes and revenue.
- The company's EBITDA margin has been affected by upfront costs and additional expenses related to brand promotion and infrastructure for the new utility bedding business.
- Net debt has increased due to funding for recent acquisitions and higher working capital requirements, with a net debt to equity ratio of 0.48x.
- There are challenges in maintaining margins due to rising costs in logistics, labor, and interest rates, as well as the withdrawal of interest subvention by the government.
- The company faces geopolitical uncertainties and volatility in the supply chain, which have extended transit times and impacted working capital.
Ladies and gentlemen, good day and welcome to Q2 and H1 FY25 earnings conference call of Indoco Industries Limited.
This conference call may contain forward-looking statements about the company which are based on the beliefs, opinions and expectations of the company. As on date of this call, these statements are not the guarantees of future performance and involve risks and uncertainties that are difficult to predict. As a reminder, all participants will be in the listen-only mode and there will be an opportunity for you to ask questions after the presentation concludes. Should you need assistance during the conference call? Please signal an operator by pressing star then zero on your Touchstone phone. Please note that this conference is being recorded.
I now hand the conference over to Mr Kailash Lalpuria, executive director and CEO of Indoco Industries Limited. Thank you and over to you Mr Lal Puria.
Thank you. Good afternoon and a very warm welcome to
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