The shares of a leading Indian textile manufacturing company, specializing in the home textiles & bedding industry hit a 20 percent upper circuit following the Q3 results with a 30 rise in Profit YoY.
Price action
With a market capitalization of Rs. 5,990.15 crores on Wednesday, the shares of Indo Count Industries Limited hit a 20 percent upper circuit making a high of Rs. 324.15 per share compared to its previous closing price of Rs. 270.15 per share.
What Happened
Indo Count Industries Limited engaged in the home textiles & bedding industry has announced its Q3 results.
Its Revenue from operations rose by 61 percent YoY from Rs. 713 Crores in Q3FY24 to Rs. 1,152 Crores in Q3FY25 and it grew by 11.1 percent QoQ from Rs. 1,036 Crores in Q2FY25 to Rs. 1,152 Crores in Q3FY25.
Its Net profit rose by 30 percent YoY from Rs. 58.1 Crores in Q3FY24 to Rs. 75.5 Crores in Q3FY25 and it declined by 7.3 percent QoQ from Rs. 81.5 Crores in Q2FY25 to Rs. 75.5 Crores in Q3FY25.
The earnings per share (EPS) for the quarter stood at Rs. 3.81, compared to Rs. 4.12 in the previous quarter and Rs. 2.93 in the same quarter last year.
Furthermore, they planned to establish its third U.S. manufacturing facility in North Carolina, producing 18 million pillows annually with an investment of $15 million and this expansion strengthens its presence across the U.S. East Coast, West Coast, and Midwest. The project will be funded through a 75:25 debt-equity structure, aiming for an aggregate revenue of $175 million from its three U.S. facilities.
Management Commentary
Commenting on the results Mr. Anil Kumar Jain, Executive Chairman said, At Indo count we have outperformed in challenging times, especially in some of our end markets. We are making significant progress towards expanding our portfolio with value-added products through our strategic investments and prudent capital allocation. Our relentless focus on serving both existing and new customers will help us strengthen our leadership position in the market.
In the medium term, we see tailwinds in business and have strengthened our leadership team with key hires to drive growth and bring in the right expertise. Focus is also on expanding the brands and utility bedding business which is expected to be a key driver for the next phase of growth. Our optimism remains high for the next 3 years with the strategic initiatives we have executed over the last few quarters.
Ace Investor
Ace Investor Mukul Mahavir Agrawal holds a 1.26 percent stake which consists of 25,00,000 equity shares in the company.
About the Company
Indo Count Industries is a leading Indian textile manufacturer, specializing in home textiles, particularly bed linen and home furnishings. It exports its products to over 50 countries and is known for its innovation in design and high-quality manufacturing processes. It operates state-of-the-art facilities with a focus on sustainability and environmental responsibility.
Written by Sridhar J
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