Wallfort Financial
Indo Count (Buy)
CMP: ₹511
Target: ₹589
Indo Count Industries has reported top-line growth of 29.69 per cent y-o-y to ₹457 crore in Q4FY15 against ₹352 crore in Q4FY14. The Home textile is the key growth driver. Home textiles division reported revenue of ₹391 crore in Q4FY15 compared with ₹260 crore in Q4FY14, a growth of 50 per cent. For FY15, ICIL has posted revenue of ₹1,744 crore which increased by 17.07 per cent on y-o-y basis. The home textile during FY15 registered revenue growth of 34 per cent to ₹1,382 crore against ₹1,029 crore for FY14. During Q4FY15, operating profits increased by 81.12 per cent y-o-y to ₹87 crore against ₹48 crore in Q4FY14 and corresponding margin increased by 541 bps y-o-y to 19.07 per cent was lead by improvement in the realisation, better product mix and reduction in raw material cost. The company has exited from the CDR four years ahead of scheduled exit. The company has paid recompense amount to all the lenders which were shown as exceptional items to the tune of ₹25.74 crore.