Indocount Q1 results had topline growth of 27% and EBITDA margins of 16% with reduced PAT margins.
Management guided for strong volume growth with EBITDA margin of 16-18% and focus on building D2C brands.
Q1 FY25 SUMMARY:
Volume growth of 26% to 25.3 Mn Mtrs in Q1and FY25 guidance of 110-115 Mn Mtrs.
Margins were impacted by 1.2% due to higher expenses related to logistics and brand building.
Investing in the supply chain , secured cotton till October and inventory levels have gone up.
Market sentiments are improving with enquiries from customers of key countries.
China+1 and FTA of India with other countries are crucial for the sector.
Continue to focus on target acquisitions and licensing agreements in future.
Have sufficient capacity for future growth and land to double the capacity.
7 verticals in the company with focus on doubling the revenue in 3 years
Branded business:
Completed acquisition of US brand WAMSUTTA for 85 Cr.
Major revenue contribution from WAMSUTTA will come from FY26.
It will be marketed in departmental stores of North america and later to other countries
Recently secured licenced brands WAVERLY and FIELDCREST promotions are going on and revenue to start contributing from Q4.
Existing JASPER CONRAN and GAIAM are doing well in UK &US.
Domestic brands like Boutique living and Layers are well accepted in India.
Target to reach 100mn$ sales through the D2C brand in 3 years.
Margins in D2C segment is 20-25%
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