Indocount notes from AR

Strong Set of Number from Indo Count.

Sales growth : 25%
Profit Growth : 55%
Current valuation : 18.7 P/E Very much reasonable compare to Nifty P/E even

Updates from management :

1. The Board has approved Expansion of Phase 1 wherein the Capacity will be expanded from 68 million meters to 90 million meters. The total Capital Expenditure will be Rs. 175 Crores. The Phase 1 will be completed within 12 -15 months and the same will be funded through internal accruals and debt.

2. The Board has also given accent to Explore the Expansion of Phase 2 and the estimated project cost would be in the region of Rs. 300 crores.

3. Entry in Domestic Business : The Board has approved venturing in Domestic Business to create Home Textile Brands. The Total Capital expenditure over next 2 years is expected to be Rs. 25 Crores. The entry in domestic business will be done through a separate subsidiary of Indo Count.

Desc : Invested.