Indo Count Ind FY11 net at Rs 11 cr

Leading spinning and home textile products maker Indo Count Industries today said it has posted a net profit of Rs 10.66 crore for the year ended March, 2011 on excellent performance of its home furnishing fabrics division.

The company had posted a net loss of of Rs 16.53 crore for 2009-10.

"The Home Textile Division was the major contributor for the sales growth," Indo Count's Chairman and Managing Director Anil Jain told reporters here.

"Entire productions were exported to all over the world and the USA was the largest buyer of the home furnishing fabrics which prove that we are of international standard," Jain said.

The company has registered a turnover of Rs 733.20 crore for the financial year ended March 2011 as compared to Rs 423 crore during the previous financial year, a growth of over 73%.

The EBITDA for the year ended March, 2011 has more than doubled to Rs 72.27 crore from Rs 33 crore in the previous year.

On standalone basis, the company posted a net loss of Rs 2.13 crore in Q4FY11 as against net profit of Rs 1.59 crore in Q4FY10. The turnover increased from Rs 140.81 crore to Rs 164.36 crore in Q4FY11.

The company's premium worldwide customers include Walmart, JCPenney, Macy's, Belk, T-J-MAXX, Kohl's, Spring Global, Bloomingdale's American Living, IKEA and Home Centre.

Looking at the on going demand of both local and international market for company's products including fine quality cotton yarns, home furnishing fabrics as well as electronic items, we are likely to touch the Rs 1,000 crore figure by end of next financial year.

The bottom line will be much more healthier too, Jain said.

The company has drawn up capex plan of Rs 500 crore over the next three years period to expand the capacity at its Kolhapur unit, Jain said, adding that the project will be funded through internal accruals and bank loans.

Revealing the future plans, Jain said, the company plans to expand the product base by adding more value added products like duvet cover, comforters, bed skirts, shams - Euro shams - neck rolls, pillows, quilted coverlets and curtains, etc.

Jain pointed out that the newly formed a wholly-owned US subsidiary- Indo Count Global Inc, - which will benefit the company to capitalise the surging demand for home textiles. This will result in substantial sales and margin growth for the future, he said.