Q1 2027 Indo Count Industries Ltd Earnings Call

August 13, 2026

Speaker #1: Ladies and gentlemen, good day, and welcome to the Indo Count Industries Limited Q1 FY27 earnings conference call. This conference call may contain forward-looking statements about the company, which are based on beliefs, opinions, and expectations.

Operator 2: Ladies and gentlemen, good day and welcome to the Indo Count Industries Limited Q1 FY27 earnings conference call. This conference call may contain forward-looking statements about the company, which are based on beliefs, opinions and expectations of the company as on the date of this call. These statements are not guarantees of future performance and involve risks and uncertainties that are difficult to predict. As a reminder, all participants' line will be in the listen-only mode, and there will be an opportunity for you to ask questions after the presentation concludes. Should you need assistance during the conference call, please signal an operator by pressing star then zero on your touchtone telephone. Please note that this conference is being recorded. I now hand over the conference over to Mr. Mohit Jain, Executive Vice Chairman. Thank you, and over to you, sir.

Operator: Ladies and gentlemen, good day and welcome to the Indo Count Industries Limited Q1 FY27 earnings conference call. This conference call may contain forward-looking statements about the company, which are based on beliefs, opinions and expectations of the company as on the date of this call. These statements are not guarantees of future performance and involve risks and uncertainties that are difficult to predict. As a reminder, all participants' line will be in the listen-only mode, and there will be an opportunity for you to ask questions after the presentation concludes. Should you need assistance during the conference call, please signal an operator by pressing star then zero on your touchtone telephone. Please note that this conference is being recorded. I now hand over the conference over to Mr. Mohit Jain, Executive Vice Chairman. Thank you, and over to you, sir.

Speaker #1: Of the company, as on the date of this call. These statements are not guarantees of future performance and involve risks and uncertainties that are difficult to predict.

Speaker #1: As a reminder, all participants' lines will be in listen-only mode, and there will be an opportunity for you to ask questions after the presentation concludes.

Speaker #1: Should you need assistance during the conference call, please signal an operator by pressing star, then zero, on your touch-tone telephone. Please note that this conference is being recorded.

Speaker #1: I now hand over the conference to Mr. Mohit Jan, Executive Vice Chairman. Thank you, and over to you, sir.

Speaker #2: Good morning, and a very warm welcome to all of you joining us for the Indo Count Industries Limited Q1 FY27 earnings call. I am also joined by Group CFO, Mr. K.

Mohit Jain: Good morning and a very warm welcome to all of you joining us for the Indo Count Industries Limited Q1 FY27 earnings call. I am also joined by Group CFO, Mr. K. Muralidharan, Manish Bhatia, our CFO, and Strategic Growth Advisors, our investor relation advisors. We hope you had the chance to review the financial results and investor presentation available on the stock exchange and on our company website. Before I begin with the business update, I would like to take a moment to pay our tribute to late Mr. Kailash Lalpuria, who was an integral part of Indo Count and a highly respected leader in the textile industry. For more than a decade, Mr. Lalpuria played a pivotal role in shaping the strategic direction and growth of Indo Count. He was instrumental in making several important strategic choices that has helped in building Indo Count into a strong institution.

Speaker #2: Mulyadharan, Manish Bhatia, CFO, and Strategic Growth Advisors, our investor relations advisors. We hope you've had the chance to review the financial results and investor presentation available on the stock exchange and on our company website.

Speaker #2: Before I begin with the business update, I would like to take a moment to pay tribute to the late Mr. Kailash Lalpuriya, who was an integral part of Indo Count and a highly respected leader in the textile industry.

Speaker #2: For more than a decade, Mr. Lalpuriya played a pivotal role in shaping the strategic direction and growth of Indo Count. He was instrumental in making several important strategic choices that have helped build Indo Count into a strong institution.

Speaker #2: I now come to the business update. Q1 FY27 marks a strong start to the year, achieving several important milestones. We delivered our highest-ever quarterly revenue, reflecting the growing scale and momentum across our businesses.

Mohit Jain: I now come to the business update. Q1 FY27 marks a strong start to the year, achieving several important milestones. We delivered our highest-ever quarterly revenue, reflecting the growing scale and momentum across our businesses. A particularly encouraging development has been the rapid scale-up of our new business, which has nearly tripled over the past one year. This demonstrates the strength of our diversification strategy and gives us increasing confidence in its contribution to our growth going forward. Importantly, our EBITDA margin is on a recovery trajectory, supported by improving operating leverage and better volumes across the business. While there are still some cost pressures as we scale, the underlying operating performance continues to strengthen. Our performance for Q1 is in line with our stated guidance for the year of INR 5,500 crores with approximately 13% EBITDA margins.

Speaker #2: A particularly encouraging development has been the rapid scale-up of our new business, which has nearly tripled over the past year. This demonstrates the strength of our diversification strategy and gives us increasing confidence in its contribution to our growth going forward.

Speaker #2: Importantly, our EBITDA margin is on a recovery trajectory, supported by improving operating leverage and better volumes across the business. While there are still some cost pressures as we scale, our underlying operating performance continues to strengthen.

Speaker #2: Our performance for Q1 is in line with our stated guidance for the year of Rs 5,500 crores, with approximately 13% EBITDA margins. Our U.S.

Speaker #2: Manufacturing operations also continue to perform well. Overall utilization has remained around 60 to 65 percent, despite the recent addition of our greenfield facility in North Carolina in January 2026.

Mohit Jain: Our US manufacturing operations also continue to perform well. Overall utilization has remained around 60% to 65%, despite the recent addition of our greenfield facility in North Carolina in January 2026. The ability to maintain these utilization levels while absorbing significant new capacity is a strong indicator of our capabilities. Overall, we believe these developments provide a strong foundation for sustained growth and improved profitability through FY27 and beyond. Before I move to further details, I would like to highlight a couple of important developments that reinforce our confidence in the opportunity ahead. We recently participated in Bharat Tex 2026, India's largest textile trade fair, and received an encouraging response from both global and domestic customers across our product portfolio. We engaged with distributors, direct retailers, LS partners, corporate gifting, and hospitality buyers. Another important milestone has been our continued progress on sustainability.

Speaker #2: The ability to maintain these utilization levels while absorbing significant new capacity is a strong indicator of our capabilities. Overall, we believe these developments provide a strong foundation for sustained growth and improved profitability through FY27 and beyond.

Speaker #2: Before I move to further details, I would like to highlight a couple of important developments that reinforce our confidence in the opportunity ahead. We recently participated in BharatTechs 2026, India's largest textile trade fair, and received an encouraging response from both global and domestic customers across our product portfolio.

Speaker #2: We engaged with distributors, direct retailers, electric partners, corporate gifting, and hospitality buyers. Another important milestone has been our continued progress on sustainability. Sustainable and responsible growth remains firmly embedded in our strategy, with a strong focus on energy efficiency, responsible sourcing, and integrating ESG principles across our operations.

Mohit Jain: Sustainable and responsible growth remains firmly embedded in our strategy, with a strong focus on energy efficiency, responsible sourcing, and integrating ESG principles across our operations. These efforts have been recognized through three prestigious awards by the Confederation of Indian Textile Industry during Bharat Tex 2026. These recognitions reinforce our commitment to building a business that delivers growth while creating long-term value responsibly. On a long-term basis, India is firmly emerging as a preferred global sourcing partner with a strong track record in quality, innovation, and delivery. The FTAs with the UK and EU, along with positive progress on the US trade deal, are creating a more favorable and level playing field for Indian textile exporters and are expected to accelerate the shift in global sourcing towards India. Let me talk about core business performance now. Our core business was impacted by the US tariff situation last year.

Speaker #2: These efforts have been recognized through three prestigious awards by the Confederation of Indian Textile Industry during BharatTechs 2026. These recognitions reinforce our commitment to building a business that delivers growth while creating long-term value responsibly.

Speaker #2: On a long-term basis, India is firmly emerging as a preferred global sourcing partner. With a strong track record in quality, innovation, and delivery, the FTAs with the UK and EU, along with positive progress on the U.S., are significant developments.

Speaker #2: Trade deals are creating a more favorable and level playing field for Indian textile exporters, and are expected to accelerate the shift in global sourcing towards India.

Speaker #2: Let me talk about core business performance now. Our core business was impacted by the U.S. tariff situation last year. We are now seeing early signs of recovery.

Mohit Jain: We are now seeing early signs of recovery. Q1 FY27 volumes stood at 23 million meters compared to 20.5 million meters in Q4 FY26, representing a 12% sequential growth. Volume throughput was impacted by container availability constraints arising from the West Asia conflict. With the external environment stabilizing, we expect this momentum to strengthen through the year. Q1 volume should not be viewed as a benchmark for the full year, as Q1 is typically a softer quarter for us, while Q2, Q3 are stronger driven by the US festive period. Core business revenue stood at INR 837 crores in Q1 FY27, up 4% sequentially. The change in product mix impacted quarterly realizations. However, the underlying volume trajectory remained steady and EBITDA margins improved. It is also important to highlight that quarterly realizations can fluctuate depending on the product mix.

Speaker #2: Q1 FY27 volumes stood at 23 million meters, compared to 20.5 million meters in Q4 FY26, representing a 12% sequential growth. Volume throughput was impacted by container availability constraints arising from the West Asia conflict.

Speaker #2: With the external environment stabilizing, we expect this momentum to strengthen throughout the year. Q1 volume should not be viewed as a benchmark for the full year, as Q1 is typically a softer quarter for us, while Q2 and Q3 are stronger, driven by the U.S.

Speaker #2: Festive period. Core business revenue stood at Rs. 837 crores in Q1 FY27, up 4% sequentially. The change in product mix impacted quarterly realizations; however, the underlying volume trajectory remains steady, and EBITDA margins improved.

Speaker #2: It is also important to highlight that quarterly realizations can fluctuate depending on the product mix. On a full-year basis, however, we expect realizations to remain broadly intact.

Mohit Jain: On a full year basis, however, we expect realizations to remain broadly intact. We remain confident of delivering our FY27 volume guidance of 105 to 110 million meters and core business revenue of approximately INR 4,000 crores. Non-US core business. Our non-US core business contributed to approximately 30% during the quarter. The UK FTA restores a level playing field for Indian exporters, while the expected EU FTA will further open a large market on duty-free terms. Together with the existing duty-free access to Australia, Japan, New Zealand and the Middle East, these arrangements significantly strengthen our global opportunity. As mentioned in the previous earnings call, we expect strong traction from non-US markets going forward and anticipate revenues from non-US markets to grow by 20% plus in FY27. New business performance.

Speaker #2: We remain confident of delivering our FY27 volume guidance of 105 to 110 million meters, and core business revenue of approximately ₹4,000 crores. Non-U.S. core business: our non-U.S.

Speaker #2: Core business contributed to approximately 30% during the quarter. The UK FTA restores a level playing field for Indian exporters, while the expected EU FTA will further open a large market on duty-free terms.

Speaker #2: Together with our existing duty-free access to Australia, Japan, New Zealand, and the Middle East, these arrangements significantly strengthen our global opportunity. As mentioned in the previous earnings call, we expect strong traction from non-U.S. markets.

Speaker #2: Markets going forward, and anticipate revenues from non-U.S. markets to grow by 20% plus in FY27. New business performance: Coming to our new business, comprising utility bedding and the USA brand business, momentum continued to strengthen, with Q1 FY27 revenue reaching Rs.

Mohit Jain: Coming to our new business comprising utility bedding and the USA brand business, momentum continued to strengthen, with Q1 FY27 revenue reaching INR 387 crores. This performance was supported by established facility in Ohio and Arizona, the newly commissioned greenfield facility in North Carolina, and the launch of Armsouder in July 2025. We remain firmly on track to achieve our FY27 business revenue target of INR 1,500 crores. On an annualized basis, Q1 FY27 revenue represents nearly 60% of our targeted USD 275 million new business ambition for 2028, providing a strong foundation for the next phase of growth. Update on our Bhilad plant. Our Bhilad, Gujarat manufacturing facility was temporarily impacted by heavy rainfall and flooding from 23 July 2026. The facility has partially resumed operations from 12 August 2026, with normalization expected in a phased manner.

Speaker #2: 387 crores. This performance was supported by established facilities in Ohio and Arizona, the newly commissioned greenfield facility in North Carolina, and the launch of Warm Shooter in July 2025.

Speaker #2: We remain firmly on track to achieve our FY27 business revenue target of Rs 1,500 crore. On an annualized basis, Q1 FY27 revenue represents nearly 60% of our targeted $275 million new business ambition for 2028, providing a strong foundation for the next phase of growth.

Speaker #2: Update on our Bhilad plant: Our Bhilad, Gujarat manufacturing facility was temporarily impacted by heavy rainfall and flooding from July 23, 2026. The facility has partially resumed operations from August 12, 2026, with normalization expected in a phased manner.

Speaker #2: A preliminary survey has been conducted by the company's appointed insurance surveyors, and the insurance claim process has been initiated. We have adequately ensured coverage for the losses.

Mohit Jain: A preliminary survey has been conducted by the insurance company's appointed surveyors and the insurance claim process has been initiated. We adequately insured to cover the losses. To conclude, Indo Count is well-positioned to capture the next phase of global home textile growth, combining trusted quality, sustainability, strong brands and increasing direct consumer connect. Looking further ahead, we remain committed to our INR 8,000 crore revenue aspiration by CY 2028, supported by continued core business growth and our USD 275 million new business ambition. With this, I will now hand over to Manish to take you through the financial numbers.

Speaker #2: To conclude, Indo Count is well positioned to capture the next phase of global home textile growth, combining trusted quality, sustainability, strong brands, and increasing direct consumer connect.

Speaker #2: Looking further ahead, we remain committed to our Rs 8,000 crore revenue aspiration by CY2028, supported by continued core business growth and our $275 million new business ambition.

Speaker #2: With this, I will now hand over to Manish to take you through the financial numbers.

Speaker #1: Good morning, everyone, and thank you for joining the Q1 FY27 earnings call. I will first provide a brief overview of our performance, following which we will open the floor for questions.

Manish Bhatia: Good morning, everyone, and thank you for joining Q1 FY27 earnings call. I will first provide a brief overview of our performance, following which we will open the floor for questions. Quarterly highlights Q1. Volume. Sales volume for Q1 FY27 stood at 23 million meters compared to 20.5 million meters in the previous quarter, reflecting a 12% quarter on quarter growth supported by an improvement in overall demand as uncertainty surrounding US tariffs eased. Sales volume for Q1 FY27 declined 3% YOY, primarily on account of container availability constraints, a temporary logistical issue that impacted dispatches. Total income. Total income for Q1 FY27 stood at INR 1,224 crores compared to INR 1,088 crores in the previous quarter, registering a 13% growth driven by higher volumes in the core businesses and continued scale-up of new businesses.

Speaker #1: So, quarterly highlights: Q1, volume—sales volume for Q1 FY27 stood at 23 million meters, compared to 20.5 million meters in the previous quarter, reflecting a 12% quarter-on-quarter growth, supported by an improvement in overall demand as the uncertainty surrounding U.S.

Speaker #1: Tariffs eased. Sales volume for Q1 FY27 declined 3% year-over-year, primarily on account of container availability constraints—a temporary logistical issue that impacted dispatches. Total income for Q1 FY27 stood at ₹1,224 crores, compared to ₹1,088 crores in the previous quarter, registering a 13% growth, driven by higher volumes in the core businesses and continued scale-up of new businesses.

Speaker #1: On a year-over-year basis, the total income grew 27%, largely led by increasing contribution from the new business. EBITDA for Q1 FY27 stood at Rs.

Manish Bhatia: On a YOY basis, the total income grew 27%, largely led by increasing contribution from the new business. EBITDA. EBITDA for Q1 FY27 stood at INR 160 crores compared to INR 116 crores in the previous quarter, registering a 38% quarter on quarter growth driven by improved operating leverage as utilization level increased across both the core and new businesses. The strong performance was partially offset by higher employee costs, primarily due to the commencement of the operations at the Greenfield facility and the continued ramp-up across other facilities. EBITDA margin improved by 241 bps to 13.1% from 10.7% in Q4 FY26. On a YOY basis, EBITDA grew 34%, with EBITDA margin expanding by 74 basis points from 12.4% in Q1 FY26, reflecting better operating leverage.

Speaker #1: 160 crores, compared to Rs. 116 crores in the previous quarter, registering a 38% quarter-on-quarter growth. This was driven by improved operating leverage as utilization levels increased across both the core and new businesses.

Speaker #1: The strong performance was partially offset by higher employee costs, primarily due to the commencement of operations at the Greenfield facility and the continued ramp-up across other facilities.

Speaker #1: EBITDA margin improved by 241 basis points to 13.1%, from 10.7% in Q4 FY26. On a year-over-year basis, EBITDA grew 34%, with EBITDA margin expanding by 74 basis points from 12.4% in Q1 FY26.

Speaker #1: Reflecting better operating leverage, expectations for Q1 FY27 stood at Rs. 63 crore, compared to Rs. 24 crore in the previous quarter. This represents a 2.5-times sequential increase, driven by improved operating efficiency, lower finance costs, and the absence of the one-off GST refund-related expense incurred in the previous quarter.

Manish Bhatia: PAT for Q1 FY27 stood at INR 63 crores compared to INR 24 crores in the previous quarter, representing a 2.5 times sequential increase driven by improved operating efficiency, lower finance costs, and the absence of the one-off GST refund-related expense incurred in the previous quarter. PAT margin expanded by 294 bps to 5.2% from 2.2% in Q4 FY26. On a YOY basis, PAT grew 62%, with PAT margin expanding by 114 bps, reflecting stronger operational performance and improved flow through from the top line to bottom line. EPS for Q1 FY27 stood at INR 3.19 per share. With this, I open the floor for questions.

Speaker #1: Expect margin expanded by 294 bps to 5.2% from 2.2% in Q4 FY26. On a year-over-year basis, expects grew 62%, with expect margin expanding by 114 bps, reflecting stronger operational performance and improved flow-through from the top line to the bottom line.

Speaker #1: EPS for Q1 FY27 stood at Rs. 3.19 per share. With this, I open the floor for questions.

Speaker #3: Thank you very much. We will now begin the question-and-answer session. To ask a question, please press star and 1 on your touch-tone telephone.

Operator 2: Thank you very much. We will now begin with the question and answer session. To ask a question, please press star and one on your touchtone telephone. If you wish to remove yourself from the question queue, you may press star and two. Participants are requested to use handsets while asking questions. Ladies and gentlemen, we will wait for a moment while the question queue is assembled. Thank you. We do have our first question line of Abhishek. Please go ahead.

Operator: Thank you very much. We will now begin with the question and answer session. To ask a question, please press star and one on your touchtone telephone. If you wish to remove yourself from the question queue, you may press star and two. Participants are requested to use handsets while asking questions. Ladies and gentlemen, we will wait for a moment while the question queue is assembled. Thank you. We do have our first question line of Abhishek. Please go ahead.

Speaker #3: If you wish to move your question, you may press star and 2. Participants are requested to use a handset while asking questions. Ladies and gentlemen, we will wait for a moment while the question queue is assembled.

Speaker #3: Thank you. We do have a first question from the line of Abhisheka. Please go ahead.

Speaker #4: Yeah, thanks for taking my question, and I hope I'm audible. Congrats on the good set of results. And, you know, my question was regarding the Bhilad plant, so you called out that there's some disruption to the operations.

[Analyst]: Yeah, thanks for taking my question, and hope I am audible. Congrats on the good set of results. My question was regarding the Bhilad plant. You called out that there is some disruption to the operations. I just wanted to know what would be the impact on the volumes, considering that the plant has been closed for about, say, 15 to 20 days now. You also called out that Q2 and Q3 are good quarters. I assume that there will be inventory with you. Considering the disruption operation, how do you look at Q3 and Q4? Is there any deferment in shipping the orders?

Abhishek Shankar: Yeah, thanks for taking my question, and hope I am audible. Congrats on the good set of results. My question was regarding the Bhilad plant. You called out that there is some disruption to the operations. I just wanted to know what would be the impact on the volumes, considering that the plant has been closed for about, say, 15 to 20 days now. You also called out that Q2 and Q3 are good quarters. I assume that there will be inventory with you. Considering the disruption operation, how do you look at Q3 and Q4? Is there any deferment in shipping the orders?

Speaker #4: So I just wanted to know whether what is the impact on, you know, the what would be the impact on the volumes considering that, you know, the plant has been closed for about, say, 15 to 20 days now.

Speaker #4: And you also called out that Q2 and Q3 are good quarters. I assume that there will be inventory with you, so considering the disruption in operations, how do you look at Q3 and Q4?

Speaker #4: Is there any deferment in shipping the orders?

Speaker #2: Uh-huh. Morning, Abhishek. On the Bhilad facility, let me tell you that we are fully insured, you know. We are slowly increasing our scale of operations, you know, in every department out there.

Mohit Jain: Morning, Abhishek. On the Bhilad facility, let me tell you that we are fully insured. We are slowly increasing our scale of operations in every department out there. Over the next couple of quarters, we are confident to serve each and every customer for all their orders. We should be able to make up our lost ground.

Speaker #2: Over the next couple of quarters, we are confident to serve each and every customer for all their orders. You know, so we should be able to make up our lost ground.

Speaker #4: Okay, so I assume that you were able to, you know, kind of offset the production loss in Bhilad in your other plant?

[Analyst]: Okay. So I assume that you were able to kind of offset the production loss in Bhilad in your other plant.

Abhishek Shankar: Okay. So I assume that you were able to kind of offset the production loss in Bhilad in your other plant.

Speaker #2: At the endeavor.

Mohit Jain: That's the endeavor.

Speaker #4: Okay. Okay. Okay. And just another bookkeeping question. So, I see the other income has, you know, on a QoQ basis, it's slightly on the higher side.

[Analyst]: Okay. Just another bookkeeping question. I see the other income has, on YOY basis, it's slightly on the higher side. So what's the reason? It's some Forex gain or something?

Abhishek Shankar: Okay. Just another bookkeeping question. I see the other income has, on YOY basis, it's slightly on the higher side. So what's the reason? It's some Forex gain or something?

Speaker #4: So, like, what's the reason? Is it some forex gain or something?

Speaker #2: What is on the higher side? Come again. You were not clear.

Mohit Jain: What is on the higher side come again, you were not clear.

Speaker #4: Other income.

[Analyst]: Other income.

Abhishek Shankar: Other income.

Speaker #2: So our other income is in line. If you see, last year it was ₹80 crore; right now it's ₹20 crore.

Mohit Jain: No, our other income is in line. If you see last year was INR 80 crore, right now it is INR 20 crore.

Speaker #4: Okay, okay. I might have missed something. Sorry. Yeah, I'll get back into the queue.

[Analyst]: Okay. I might have missed something, sorry.

Abhishek Shankar: Okay. I might have missed something, sorry.

Mohit Jain: Yeah.

[Analyst]: I will get back into the queue.

Abhishek Shankar: I will get back into the queue.

Speaker #3: Thank you. Next question. Do I know Raman KV from Cequent Investment? Please.

Operator 2: Thank you. Next question is line of Raman KV from Secan Investments.

Operator: Thank you. Next question is line of Raman KV from Secan Investments.

Raman Venkata Kerti: Hello, sir. Can you hear me? Hello.

Raman KV: Hello, sir. Can you hear me? Hello.

Speaker #1: Oh, hello. Hello, sir. Can you hear me? Hello?

Speaker #2: Yes. Yes.

Mohit Jain: Yes.

Speaker #1: Sir, I just have two questions. First, I just want to understand what’s the margin difference across our core business—which is bedlining—versus our new businesses, such as utility bedding and the branded business.

Raman Venkata Kerti: Sir, I just have two questions. One is I just want to understand what's the margin difference across our core business, which is bed linen, versus our new business, which is utility bedding and branded business. How much of a margin difference do these two businesses have?

Raman KV: Sir, I just have two questions. One is I just want to understand what's the margin difference across our core business, which is bed linen, versus our new business, which is utility bedding and branded business. How much of a margin difference do these two businesses have?

Speaker #1: How much of a margin difference do these two businesses have? Fair.

Mohit Jain: As we have mentioned, Raman, that our objective once our utility bedding business achieves full scale, we expect to do 15% also on the utility bedding business. Of course, as we scale up more than our new greenfield project has just started. So any new facility that starts, there's a gestation period. So keeping that in mind, that's why the margins on that facility is on the lower side. But otherwise, our bed linen business, you can get a respective idea from our standalone numbers. So we've done slightly better than 15% in this quarter. But over a period of time, we expect both businesses to do similar margins.

Speaker #2: No, as we have mentioned, Raman, our objective is that once the utility bedding business achieves full scale, we expect to do 15% also on the utility bedding business.

Speaker #2: Of course, as we then scale up more than our new Greenfield project has just started, you know, so you know, any new facility that starts, there's a time gestation period, you know.

Speaker #2: So, keeping that in mind, that's why the margins on that facility are on the lower side. But otherwise, our bedlining business—you can get a respective idea from our standalone numbers.

Speaker #2: So we've done slightly better than 15% in this quarter. You know, but over a period of time, we expect both businesses to deliver similar margins.

Speaker #1: So, bedlining and utility businesses are, like, a 15% margin business. So my assumption is, our branded business should be a much better, higher realization business.

Raman Venkata Kerti: So bed linen and utility business are a 15% margin business. My assumption is a branded business should be a much better, higher realization business. Is there any margin difference?

Raman KV: So bed linen and utility business are a 15% margin business. My assumption is a branded business should be a much better, higher realization business. Is there any margin difference?

Speaker #1: So will— is there any margin difference?

Speaker #2: So again, as we mentioned, I just want to be clear that from a long-term perspective, we expect our bedlining business to do 15%.

Mohit Jain: Again, as we mentioned, I just want to be clear that from a long-term perspective, we expect our bed linen business to do 15%, we expect our utility bedding business to do 15%, and our brand business should do 100 to 200 basis points better than 15%.

Speaker #2: We expect our utility bidding business to do 15%. And our brand business should do 100 to 200 basis points better than 15%.

Speaker #1: Understood. Yeah, that was my main point. And second, my second question is regarding revenue. How much revenue came from the USA in this quarter versus the last quarter?

Raman Venkata Kerti: Understood. That was my main.

Raman KV: Understood. That was my main.

Raman Venkata Kerti: Second question is from the revenue perspective, how much revenue was from USA during this quarter versus last quarter?

Raman KV: Second question is from the revenue perspective, how much revenue was from USA during this quarter versus last quarter?

Speaker #2: From the new business or from the US? I did not follow.

Mohit Jain: From the new business or from the I did not follow.

Speaker #1: Overall, overall—so I was asking, on a consolidated basis, how much revenue was from the US during this quarter versus the last quarter?

Raman Venkata Kerti: Overall. I was asking on a consolidated basis, how much revenue was from US during this quarter versus the last quarter.

Raman KV: Overall. I was asking on a consolidated basis, how much revenue was from US during this quarter versus the last quarter.

Speaker #2: So I can tell you, our core business—70% of our revenue comes from the US, and 30% comes from non-US countries. And, you know, the new business is all US.

Mohit Jain: I can tell you our core business, 70% of our revenue comes from the US, and 30% comes from non-US countries. The new business is all US. The 387 crores is all US, so you can do the maths.

Speaker #2: So the ₹387 crores is all US. So you can do the math.

Speaker #1: Understood, sir. Thank you. I'll just join back in the queue.

Raman Venkata Kerti: Understood, sir. Thank you. I will just join back in with you.

Raman KV: Understood, sir. Thank you. I will just join back in with you.

Speaker #2: Sure.

Mohit Jain: Sure.

Speaker #3: Thank you. Next question, from the Wana AMC. Please go ahead.

Operator 2: Thank you. Our next question from Naveen Bed from the Moana AM. Please go ahead.

Operator: Thank you. Our next question from Naveen Bed from the Moana AM. Please go ahead.

Speaker #4: Thank you. Thank you for the opportunity. I just wanted to sort of clarify whether there was any tariff refund in the quarter, and if yes, then how did we account for it?

Naveen Bed: Thank you. Thank you for the opportunity. I just wanted to clarify whether there was any tariff refund in the quarter, and if yes, then how did we account it for?

[Analyst] (Moana AMC): Thank you. Thank you for the opportunity. I just wanted to clarify whether there was any tariff refund in the quarter, and if yes, then how did we account it for?

Speaker #2: No, there's no tariff refund in the quarter, Naveen, at this point of time.

Mohit Jain: No, there is no tariff refund in the quarter, Naveen, at this point of time.

Speaker #4: Okay. Got it. Thank you.

Naveen Bed: Okay. Got it. Thank you.

[Analyst] (Moana AMC): Okay. Got it. Thank you.

Speaker #3: Thank you. Next question is from the line of All Accurate Advisors. Go ahead. Calles Chen, please go ahead with your question.

Operator 2: Thank you. Our next question is from the line of Jan from Equitable Advisors. Please go ahead.

Operator: Thank you. Our next question is from the line of Jan from Equitable Advisors. Please go ahead.

Kailash Jan: Hello?

Operator 2: Kailash Jan, please go ahead with your questions.

Operator: Kailash Jan, please go ahead with your questions.

Speaker #1: Hello. Am I audible?

Kailash Jan: Hello, am I audible?

Speaker #2: Yes. Yes.

Mohit Jain: Yes.

Speaker #1: Yes, so thank you for the opportunity. So, like, as you mentioned in your initial remarks, there were some container issues in Q1. So how is the situation now?

Kailash Jan: Thank you for the opportunity, sir. As you mentioned in an initial remarks that there was some container issues in Q1. How is the situation now and are you confident of shipping out the volumes in the next two, three quarters?

Speaker #1: And, like, are you confident about shipping out the volumes in the next two to three quarters?

Speaker #2: Yeah, so as we speak, we are confident, you know, of achieving our guidance of 105 to 110 million meters and ₹4,000 crore revenue.

Mohit Jain: Yeah. As we speak, we are confident of achieving our guidance of 105 to 110 million meters and INR 4,000 crore revenue. The container issue continues.

Speaker #2: The container issue continues.

Speaker #1: Okay. And on the new business, so Q2 and Q3 are usually stronger for the new business?

Kailash Jan: Okay. On the new business, Q2 and Q3 are usually stronger for the new business?

Speaker #2: No, you know, the new business is very new for us, so it will take us some time to get the, you know, what's the variability in the business.

Mohit Jain: No. The new business is very new for us, so it will take us some time to get what is the variability in the business. From a core business perspective, I would say that Q2 and Q3 are historically been the higher quarters.

Speaker #2: You know, from a core business perspective, I would say that Q2 and Q3 have historically been the higher quarters.

Speaker #1: Okay. So you expect this 102 to continue in the next two to three quarters?

Kailash Jan: Okay. So you expect this run rate to continue in the next two, three quarters?

Speaker #2: What run rate?

Mohit Jain: What run rate?

Speaker #1: The ₹370 crores that we have done in the new business.

Kailash Jan: The INR 370 crores that we have done in the new business.

Speaker #2: So, for the new business, we've given guidance of ₹1,500 crores for the full year. You know, so we should be able to be on track for that.

Mohit Jain: For the new business, we have given a guidance of INR 1,500 crores for the full year. We should be able to be on track for that.

Speaker #1: Got it. Thank you so much.

Kailash Jan: Got it. Thank you so much.

Speaker #3: Thank you. Next question is from the line of Bhavin Cheda from Inam Holdings. Please go ahead.

Operator 2: Thank you. Our next question is from the line of Bhavin Sheda from ENAM Holdings. Please go ahead.

Operator: Thank you. Our next question is from the line of Bhavin Sheda from ENAM Holdings. Please go ahead.

Speaker #5: Yeah. Good morning, sir. Overall, very good numbers and very strong guidance also in the presentation. So, a few questions—first, to continue on the tariff refund. Though you said that there's no tariff refund in the quarter, can you guide us whether you are expecting any tariff refund, any filings made, or any filing made by distributor or client for the goods supplied by Indo Count?

Bhavin Sheda: Yeah, good morning, sir. Overall, very good numbers and very strong guidance also in the presentation. Sir, few questions. First, to continue on the tariff refund, though you said that there is no tariff refund in the quarter. Can you guide us whether you are expecting any tariff refund, any filings made or any filing made by distributor or client for the goods supplied by Indo Count, and how the discussions are going around with the clients on the same?

Bhavin Chheda: Yeah, good morning, sir. Overall, very good numbers and very strong guidance also in the presentation. Sir, few questions. First, to continue on the tariff refund, though you said that there is no tariff refund in the quarter. Can you guide us whether you are expecting any tariff refund, any filings made or any filing made by distributor or client for the goods supplied by Indo Count, and how the discussions are going around with the clients on the same?

Speaker #5: And how are the discussions going with the clients on the same?

Speaker #2: Sure. Good morning, Bhavin. Yeah, so we do not expect any material financial benefit from the potential US tariff refund, Bhavin. Nearly 80% of our exports are on an FOB basis.

Mohit Jain: Sure. Morning, Bhavin. We do not expect any material financial benefit from the potential US tariff refund, Bhavin. Nearly 80% of our exports are on FOB basis, where the tariff is borne by the importer. As the process is still evolving and discussions with customers are going on, it would be premature to quantify the amount or the proportion that might ultimately come to the company. In our view, we will have a greater perspective and clarity by the end of the year, and we will keep all the investors updated on the same.

Speaker #2: Where the tariff is borne by the importer, as the process is still evolving and discussions with customers are ongoing, it would be premature to quantify the amount or the proportion that might ultimately come to the company.

Speaker #2: In our view, we'll have greater perspective and clarity by the end of the year, and we'll keep all the investors updated on the same.

Speaker #5: Sure. So my second question is on the bed linen realization, which was approximately ₹357 per meter. I see that on a year-on-year basis, it was just higher by one and a half percent.

Bhavin Sheda: Sure. My second question is on the bed linen realization was approximately INR 357 a meter, which I see on a YOY basis was just higher by 1.5%, despite rupee depreciating by over 9%, 10%, and tariff coming in Q1 much lower than what it was last year. Why we do not see it getting reflected in rupee realization? Because even assuming dollar realization being same, has there been an impact of product mix or we are still to take price hikes upon the clients?

Bhavin Chheda: Sure. My second question is on the bed linen realization was approximately INR 357 a meter, which I see on a YOY basis was just higher by 1.5%, despite rupee depreciating by over 9%, 10%, and tariff coming in Q1 much lower than what it was last year. Why we do not see it getting reflected in rupee realization? Because even assuming dollar realization being same, has there been an impact of product mix or we are still to take price hikes upon the clients?

Speaker #5: Despite the rupee depreciating by over 9–10% and tariffs coming in Q1 much lower than what they were last year, why don't we see this getting reflected in rupee realization?

Speaker #5: Because even assuming dollar realization being the same, has there been an impact of product mix, or are we still to take price hikes with the clients?

Speaker #2: So, we have seen an impact on product mix in the first quarter, but as I’ve mentioned, look at our realizations on a yearly basis.

Mohit Jain: So we have seen an impact on product mix in Q1, but as I have mentioned that, look at our realizations on a yearly basis. So on a yearly basis, we will be absolutely fine. As far as your question on price increase, as we had mentioned last call also that, of course, as we are aware that the post as the war took place in February end, all raw material prices have gone up. So on a case to case basis, we have gone back to all our customers, and we have concluded all our price conversations. So those impacts will come from Q2 onwards.

Speaker #2: So on a yearly basis, we'll be absolutely fine. You know, and as far as your question on price, increase, you know, as we had mentioned last year, last call also, that of course, as we are aware, that post, as the war took place in February end, sorry, you know, all raw material prices have gone up.

Speaker #2: So, on a case-to-case basis, we've gone back to all our customers, and we've concluded all our price conversations. So those impacts will come from Q2 onwards.

Speaker #5: Okay, please see. So, in rupee terms, we'll keep on seeing price improving as the impact of the client negotiation comes through, right?

Bhavin Sheda: Okay. So in the INR terms, we will keep on seeing price improving as the impact of the client negotiation that comes in through, right?

Bhavin Chheda: Okay. So in the INR terms, we will keep on seeing price improving as the impact of the client negotiation that comes in through, right?

Speaker #2: Yeah. Yes.

Mohit Jain: Yes.

Speaker #5: Right. And my last question on the non-US business: obviously, the UK tariff and FDA have come through. So, how much of the business do we have in the UK, and how are we seeing the client interactions? Have their clients started sourcing more?

Bhavin Sheda: Right. My last question on the non-US business, obviously the UK tariff, FTA has come through. So how much of the business we have in UK and how we are seeing on the client interaction whether clients have started sourcing more, has there been new client inquiries? If any update on that. Because we obviously will have 9% to 10% benefit there now.

Bhavin Chheda: Right. My last question on the non-US business, obviously the UK tariff, FTA has come through. So how much of the business we have in UK and how we are seeing on the client interaction whether clients have started sourcing more, has there been new client inquiries? If any update on that. Because we obviously will have 9% to 10% benefit there now.

Speaker #5: Have there been any new client inquiries? Is there any update on that? Because, obviously, we will now have a 9 to 10 percent benefit there.

Speaker #2: Right. Our UK business is, you know, anywhere has been between 8 and 10 percent. Having said that, you know, we have a very active office in the UK with the team there.

Mohit Jain: Right. Our UK business has been between 8% and 10%. Having said that, we have a very active office in the UK with the team there. Our interactions have, let's say we were interacting with a client, I'm making it up, 4 times in a year, that interaction has gone up 8 times in a year. So the interaction, whether it's the UK or the EU, has gone up. Whatever we've seen from the past with FTAs, it's not a switch on and off, right? As soon as the FTA has happened, something happens dramatically the same quarter or next quarter. It takes, I would say, 12 to 18 months to pan out. So we are seeing that visibility going forward on the positive side.

Speaker #2: You know, in our interactions—let's say we were interacting with a client, I'm making it up—four times in a year, that interaction has gone up to eight times in a year.

Speaker #2: So, the interaction, whether it's the UK or the EU, has gone up. Whatever we've seen from the past with FDAs, it's not that it's a switch on and off, right?

Speaker #2: As soon as the FDAs happened, something happens dramatically in the same quarter or the next quarter. It takes, I would say, 12 to 18 months to pan out.

Speaker #2: So we are seeing that visibility going forward, on the positive side.

Speaker #5: Sure. And obviously, also given a guidance of over 20% revenue growth you're seeing in the non-US business, is that partly reflecting new business in the UK plus EU area?

Bhavin Sheda: Sure. You have also given a guidance of over 20% revenue growth you are seeing in the non-US business. Is that partly reflecting new business in UK plus EU area?

Bhavin Chheda: Sure. You have also given a guidance of over 20% revenue growth you are seeing in the non-US business. Is that partly reflecting new business in UK plus EU area?

Speaker #2: Absolutely. Those countries, and other parts of the world also.

Mohit Jain: Absolutely. Those countries and other parts of the world also.

Speaker #5: Yeah. Thanks a lot, and best of luck.

Bhavin Sheda: Thanks a lot and best of luck, sir.

Bhavin Chheda: Thanks a lot and best of luck, sir.

Speaker #2: Yeah. Thank you.

Mohit Jain: Thank you.

Speaker #3: Thank you. Anyone who wishes to add?

Operator 2: Thank you. Anyone who Shistra April Hello.

[Unknown Speaker]: Thank you. Anyone who Shistra April Hello.

Speaker #2: Hello.

Speaker #6: Sorry to interrupt. We'll take the next question from the line of Cost of Power Scarf. Please go ahead.

Operator 1: Sorry to interrupt. We will take the next question from the line of Kaustubh Pawaskar. Please go ahead.

Operator: Sorry to interrupt. We will take the next question from the line of Kaustubh Pawaskar. Please go ahead.

Mohit Jain: Yeah. Thanks.

Speaker #2: Yeah.

[Unknown Speaker]: Yeah. Thanks.

Speaker #6: Thanks. Sorry to interrupt. Mr. Pavaskar, the line for the management has been disconnected. Please stay connected while we reconnect the management.

Operator 1: Sorry to interrupt. Mr. Pawaskar, the lines of the management have got disconnected. Please stay connected while we reconnect the management. Ladies and gentlemen, thank you for patiently holding. We now have the lines with the management reconnected. Over to you, sir.

Operator: Sorry to interrupt. Mr. Pawaskar, the lines of the management have got disconnected. Please stay connected while we reconnect the management. Ladies and gentlemen, thank you for patiently holding. We now have the lines with the management reconnected. Over to you, sir.

Speaker #2: Sure.

Speaker #6: Ladies and gentlemen, thank you for patiently holding. We now have the line for management reconnected. Over to you, sir. Sir, we have Mr. Pavaskar in the queue.

Mohit Jain: Yeah.

Operator 1: Sir, we have Mr. Pawaskar in queue. Please go ahead, Mr. Pawaskar.

Operator: Sir, we have Mr. Pawaskar in queue. Please go ahead, Mr. Pawaskar.

Speaker #6: Please go ahead, Mr. Pavaskar.

Speaker #3: Good morning, sir. This is Kaur Stuber. Congratulations on a good set of numbers, and thank you for giving me the opportunity. Sir, I have one question.

Kaustubh Pawaskar: Good morning, sir. This is Kaustubh here. Congrats for good set of numbers, and thanks for giving me the opportunity. Sir, I have one question. Your standalone EBITDA margins for this quarter, it has improved to around 13.9%. If you look into the pre-tariff eras well, your standalone EBITDA margins was around 14% to 14.5%. Going ahead, considering the fact that there are certain supply disruption and the cost has gone up, also this Bhilad facility which was non-operational for around 20 days. Considering that, should we expect some decline in margins in Q2, in Q3 at standalone level? Hello?

Speaker #3: Your standalone EBITDA margins for this quarter, you know, have improved to around 13.9 percent. So if we look, you know, into the pre-tariff era as well, your standalone EBITDA margins were around 14 to 14.5 percent.

Speaker #3: Going ahead, considering the fact that there are certain supply disruptions and the cost has gone up, also, this Billard facility, which was non-operational for around 20 days.

Speaker #3: So, considering that, should we expect some decline in margins in quarter two and quarter three at the standalone level? Hello?

Speaker #6: Members of the management team?

Operator 1: Members of the management team?

Operator: Members of the management team?

Speaker #2: Yes, yes, I can hear you, ma'am.

Mohit Jain: Yes, yes, I can hear you, ma'am.

Speaker #6: Yes, sir. Please proceed.

Operator 1: Yes, sir. Please proceed.

Operator: Yes, sir. Please proceed.

Speaker #2: Yeah. Kaur Stub, can you hear me?

Mohit Jain: Yeah. Kaustubh, can you hear me?

Speaker #3: Yes. Yes, sir. Yes, sir.

Kaustubh Pawaskar: Yes, sir.

Mohit Jain: Yeah. So what I said is that I will not be able to guide you at such a precise level, but our endeavor is to maintain our 13% blended margin on a consolidated basis. Look at it from that perspective. Some quarter here and there, a little bit does not matter. For the full year, that is our endeavor.

Speaker #2: Yeah, yeah. So what I said is that I'll not be able to guide you at such a precise level, but I endeavor to maintain our 13% blended margin, you know, on a consolidated basis.

Speaker #2: So look at it from that perspective. Some quarter here and there, a little bit, does not matter, you know. So for the full year, that's an endeavor.

Speaker #3: Right. Sir, just and just from the understanding point of view, are we expecting any you know, one-time you know, losses because of this disruption what you have you know, seen in the billard facility?

Kaustubh Pawaskar: Right. Sir, just from the understanding point of view, are we expecting any one-time losses because of this disruption, what we have seen in the Bhilad facility? Anything on that front, if you could help us.

Speaker #3: Anything on that front, if you could help us?

Speaker #2: Sure. Sure. No. All our facilities are adequately insured. You know, whether it's for property, whether it's for inventory, whether it's for loss or profit, you know, so as a company, we are adequately insured in all our locations.

Mohit Jain: Sure. No, all our facilities are adequately insured, whether it is for property, whether it is for inventory, whether it is for loss of profit. As a company, we are adequately insured in all our locations, including Bhilad, of course. Okay.

Speaker #2: Including billard, of course.

Speaker #3: Okay. Okay.

Kaustubh Pawaskar: Okay.

Speaker #6: Thank you. A reminder, we'll take the next question from the line of Jatin Damania from Swan Investments. Please go ahead.

Operator 1: Thank you. A reminder, we will take the next question from the line of Jatin Damania from Swan Investments. Please go ahead.

Operator: Thank you. A reminder, we will take the next question from the line of Jatin Damania from Swan Investments. Please go ahead.

Speaker #5: Oh, good morning, sir, and thank you for the opportunity. Just one question, which is on new business. So, on the new business, other than bedding and utility, can you shed some light on how the branding and the licensing brand business are doing?

Jatin Damania: Good morning, sir, and thank you for the opportunity. Just one question which is on a new business. On the new business, other than the bedding and utility, can you throw a light how are the branding and the licensing brand business doing and have been Q1 and how one should see a ramp-up over there?

Speaker #5: I mean, we have done Q1, and how should one see a ramp-up over there?

Speaker #2: Sure. Morning, Jatin. So, you know, our endeavor is to do around $100 million over the next three years in that business. And right now, the split remains two-thirds of our revenue coming from our utility bedding business, which is a manufacturing business, you can say.

Mohit Jain: Sure. Morning, Jatin. Our endeavor is to do around USD 100 million over the next three years in that business. And right now, split remains two-third of our revenue, coming from our utility bedding business, which is a manufacturing business, you can say. And one-third of the revenue coming from brands. On the branded business, we are selling not only what we produce, so we are selling all soft home textiles, which includes towels, bath mats, window treatments, rugs, utility bedding, which is pillows, mattress protectors, down alternative comforters, bed linen, quilts, comforters, blankets, throws. So a whole gamut of products. Our expectation is that in the whole year, we will do around INR 500 crores in this business. And in this quarter, we have done slightly above INR 125 crores. If you look at one-third of 387, roughly.

Speaker #2: And one-third of the revenue is coming from brands. On the branded business, we are selling not only what we produce, so we are selling all soft home textiles.

Speaker #2: You know, which includes towels, bath mats, window treatments, rugs, utility bedding—which is pillows, mattress protectors, down-alternative comforters—bed linen, quilts, comforters, you know, blankets, and throws.

Speaker #2: So, a whole gamut of products. Our expectation is that, over the whole year, we'll do around ₹500 crore in this business. And in this quarter, we've done slightly above ₹125 crore.

Speaker #2: You know, if you look at one-third of 387, roughly, you know, so it's going in the right direction. And as we had mentioned, Wamsut also, we launched just a year ago now, if you think about it.

Mohit Jain: It is going in the right direction, and as we had mentioned that Wamsutta also we launched just a year ago now, if you think about it, and it is slow and steady, but the building blocks are there.

Speaker #2: And it's a slow and steady process, but the building blocks are there.

Speaker #5: Sure, sir. And the brand business, you know, 100 to 200 bps better margin than our existing business of 15 percent. That's what we are guiding at.

Jatin Damania: Sure, sir. And brand business have 100 to 200 with better margin than our existing business of 15% that was our guidance.

Speaker #2: Once we get to, you know, 100 million, that's when that will trigger. Because right now, there's a more, you know, we have the whole team in place.

Mohit Jain: Once we get to 100 million, that is when that will trigger. Because right now there is more, we have the whole team in place. There is more investment going in to build. These are very new businesses, so I think it is commendable for the company to be able to build a INR 1,500 crore revenue in less than 18 months.

Speaker #2: There's more investment going into building. You know, these are very new businesses, so I think it's commendable for the company to be able to build a Rs 1,500 crore revenue in less than 18 months.

Speaker #5: Okay, so that's commendable. And on this investment also, are we looking at further investments on the employer front in terms of growing our business to $100 million, or is the investment already done?

Jatin Damania: Okay. So that is commendable. On this investment also, are we looking at further investments on the employers of front in terms of growing our business to 100 million or probably the investment is already done?

Speaker #2: I mean, there would be some balancing investments, you know. It's always—it's not 100 percent done, but I would say 70 to 75 percent is in place, you know.

Mohit Jain: There would be some balancing investments. There is always, it is not 100% done, but I would say 70%, 75% is in place.

Speaker #5: Yes, sir. That's all from my side. Thank you, and all the best.

[Analyst]: Sure, sir. That is it from my side. Thank you and all the best.

Jatin Damania: Sure, sir. That is it from my side. Thank you and all the best.

Speaker #2: The brand business, yeah. But, you know, I mean, it's an evolving economy and an evolving business. We are also learning as we move forward.

Mohit Jain: The brand business. It is an evolving economy, evolving business. We are also learning as we are moving forward.

Speaker #5: Sure, sir. Thank you, and all the best.

Jatin Damania: Sure, sir. Thank you, and all the best.

Speaker #6: Thank you. We'll move on to the next question. That is from the line of Shraddha Agarwal from Asian Market Securities. Please go ahead. Shraddha, yes, ma'am.

Operator 1: Thank you. We will move on to the next question. That is from the line of Shraddha Agarwal from Asian Markets Securities. Please go ahead.

Operator: Thank you. We will move on to the next question. That is from the line of Shraddha Agarwal from Asian Markets Securities. Please go ahead.

Shraddha Agarwal: Hello.

Shradha Agrawal: Hello.

Operator 1: Shraddha, Yes, ma'am, please proceed.

Operator: Shraddha, Yes, ma'am, please proceed.

Speaker #6: Please proceed.

Speaker #7: Yeah. Hi. Congratulations on a very resilient performance. Two questions. First, in terms of our utility bedding business, how should we look at the ramp-up of utilization over the next two to three quarters?

Shraddha Agarwal: Yeah. Hi. Congratulations on a very resilient performance. Two questions. First is in terms of our utility bedding business, how should we look at the ramp-up of utilization over the next two, three quarters?

Shradha Agrawal: Yeah. Hi. Congratulations on a very resilient performance. Two questions. First is in terms of our utility bedding business, how should we look at the ramp-up of utilization over the next two, three quarters?

Speaker #7: And then I have a follow-up.

Speaker #2: Sure. Morning, Shraddha. So, for utility bedding for this year, our endeavor is to be at 60% to 65% utilization. You know, our new facility just came on stream somewhere in the middle of January.

Mohit Jain: Sure. Morning, Shraddha. For utility bedding for this year, our endeavor is to be at 60% to 65% utilization. Our new facility just came on stream somewhere middle of January. Even keeping that in mind, we were able to be around those utilization levels in Q1, and we think we should be stable around these levels for the rest of the year also. For the full year, you should look at 60%, 65%.

Speaker #2: So even keeping that in mind, you know, we were able to be around those utilization levels in Q1. And we think we should be stable around these levels for the rest of the year also.

Speaker #2: So for the full year, you should look at 60, 65.

Speaker #7: But why is that the case if we've already achieved 60–65% utilization in one quarter? So, are we not...

Shraddha Agarwal: But why is that the case if we have already achieved 60%, 65% utilization in one Q? Are we not expecting any further?

Shradha Agrawal: But why is that the case if we have already achieved 60%, 65% utilization in one Q? Are we not expecting any further?

Speaker #2: We are not magicians, huh?

Mohit Jain: We are not a magician.

Speaker #7: No, that's true. But for the next nine months, are we not?

Shraddha Agarwal: No, that's true. But for the next 9 months, are we not-

Shradha Agrawal: No, that's true. But for the next 9 months, are we not-

Speaker #2: If I would have done 20 percent, then you would have asked me, why 20? Now, if I've done 60, 65, you're asking me why.

Mohit Jain: If I would have done 20%, then you would have asked me why 20. If we've done 60%, 65%, you're asking me why. There can be ups and downs in businesses. At this point of time, if we are able to do 60%, 65%, we are very satisfied. That's the level that we'll be at.

Speaker #2: So, I mean, you know, there can be ups and downs in businesses. So, at this point of time, if you're able to do 60, 65, we are very satisfied.

Speaker #2: You know, and that's the level that we'll be at.

Speaker #7: Right. And in terms of input cost inflation, have we been able to pass that on to retailers in the US on the utility side?

Shraddha Agarwal: Right. In terms of input cost inflation, have you been able to pass on that to retailers in the US on the utility side?

Shradha Agrawal: Right. In terms of input cost inflation, have you been able to pass on that to retailers in the US on the utility side?

Speaker #2: Yes, because, you know, in the utility bedding business, we are competing with facilities or competitors within the country. So, everybody's at the same level playing field.

Mohit Jain: Yes, because the utility bedding business, we are competing with facilities or competitors within the country. Everybody's at the same level playing field.

Speaker #7: Mm-hmm. And what is the ratio between cotton and non-cotton for our utility business?

Shraddha Agarwal: Mm-hmm. What is the ratio between cotton and non-cotton for our utility business?

Shradha Agrawal: Mm-hmm. What is the ratio between cotton and non-cotton for our utility business?

Speaker #2: It's a mixed basket, you know, depending on the customer trends and what customers are looking for. A lot of these are performance-based fabrics. So we use products like nylon, polyester, stretch fabrics, and a mix of cotton with these.

Mohit Jain: It is a mixed basket, depending on the customer trends, what customers are looking for. A lot of these are performance-based fabrics, so we use products like nylon, polyester, stretch fabrics, mix of cotton with these. So it is a whole gamut of products. We have a global sourcing team in place. We have an office in Shanghai with people there, so they do global sourcing, and depending on product, raw materials are sourced accordingly.

Speaker #2: So it's a whole gamut of products, you know. And we have a global sourcing team in place. We have an office in Shanghai, with people there.

Speaker #2: So, they do global sourcing, and depending on the product, raw materials are sourced accordingly.

Speaker #7: No. So, which is why, I mean, we've seen higher input inflation in, you know, non-cotton-based products because of the Middle East crisis. So, to what extent have we been able to pass on that inflation to customers?

Shraddha Agarwal: Which is why, we have seen a higher input inflation in non-cotton based products because of the Middle East crisis. To what extent have we been able to pass on that inflation to customers?

Shradha Agrawal: Which is why, we have seen a higher input inflation in non-cotton based products because of the Middle East crisis. To what extent have we been able to pass on that inflation to customers?

Speaker #7: So.

Speaker #2: We are able to pass that on. I mean, there could be some lag effect of two or three months here and there, but otherwise, it's passed on, you know.

Mohit Jain: We are able to pass that on. There could be some laggard effect of two, three months here and there, but otherwise it is passed on.

Shraddha Agarwal: Right.

Shradha Agrawal: Right.

Speaker #2: If it's something consistent, then there's enough value engineering that can be done on the product also.

Mohit Jain: If it's something consistent, then there's enough value engineering that can be done on the product also.

Speaker #7: Okay. And the other question is in terms of our core business, the branded portfolio in the core business. So, like the new business, you said that you're sourcing from other players as well.

Shraddha Agarwal: Okay. The other question is in terms of our core business, the branded portfolio in the core business. Like the new business, you said that you're sourcing from other players as well, and it's not only own manufacturing that we supply. So within the core business branded portfolio also, do we source from other players or is it just our own production that we supply in the branded mix?

Shradha Agrawal: Okay. The other question is in terms of our core business, the branded portfolio in the core business. Like the new business, you said that you're sourcing from other players as well, and it's not only own manufacturing that we supply. So within the core business branded portfolio also, do we source from other players or is it just our own production that we supply in the branded mix?

Speaker #7: And it's not only our own manufacturing—that's a supply. So within the core business branded portfolio also, do we source from other players, or is it just our own production that we supply in the branded mix?

Speaker #2: Out of the core business, it's only our production, if that's your question.

Mohit Jain: Out of the core business, it's only our production.

Shraddha Agarwal: Okay.

Shradha Agrawal: Okay.

Mohit Jain: If that's your question.

Speaker #7: So just bed linen, and that too we are manufacturing—nothing is sourced from outside.

Shraddha Agarwal: Just bed linen and that too our manufacturing, nothing sourced from outside.

Shradha Agrawal: Just bed linen and that too our manufacturing, nothing sourced from outside.

Speaker #2: In the

Mohit Jain: In the core business number?

Speaker #7: Yeah. Yeah.

Shraddha Agarwal: Yeah.

Shradha Agrawal: Yeah.

Speaker #2: Correct. Correct. Correct. We manufacture bed linen, quilts, comforters, you know, utility bedding. All of that is here.

Mohit Jain: Correct. We manufacture bed linen, quilts, comforters, utility bedding, all of that is here.

Speaker #7: Right. And how should we look at the core business branded mix margins versus the non-branded margins in the core business?

Shraddha Agarwal: Right. How should we look at the core business branded mix margins vis-à-vis the non-branded margins in core business?

Shradha Agrawal: Right. How should we look at the core business branded mix margins vis-à-vis the non-branded margins in core business?

Speaker #2: So, you know, I just want to clarify one point. So for the four brands that we have, which is Vamsuta, Fieldcrest, Waverly, and Gayem, which are our four what we are classifying as our US brands, any business that even produced at our facility in India, at Indo Count, you know, is the meterage comes in the overall meterage.

Mohit Jain: I just want to clarify one point. For the four brands that we have, which is Wamsutta, Fieldcrest, Waverly, and Gaiam, which are our four, what we are classifying as our US brands. Any business that is even produced at our facility in India at Indo Count, the meterage comes in the overall meterage, but the revenue is captured in new business.

Speaker #2: But the revenue is captured in new business, okay. The rest of the business—when we are declaring that our overall business mix is 20 percent a branded portfolio—a lot of that is our house brands.

Shraddha Agarwal: Okay.

Shradha Agrawal: Okay.

Mohit Jain: The rest of the business, when we are declaring that our overall business mix, 20% is a branded portfolio. A lot of those are our house brands, that we will be selling on e-commerce, on Amazon, Wayfair, Overstock, other platforms. There the blended margin of the core business remains at 15%.

Speaker #2: You know that we will be selling on e-commerce, on Amazon, Wayfair, Overstock, and other platforms. So, the blended margin of the core business remains at 15%.

Speaker #7: No, so what I'm trying to say is that new business comprises two segments, right? One is your utility, and the other is branded.

Shraddha Agarwal: No. What I am trying to say is that new business comprises of two segments, right? One is your utility and the other is branded.

Shradha Agrawal: No. What I am trying to say is that new business comprises of two segments, right? One is your utility and the other is branded.

Speaker #7: That branded business sourcing is from other countries, other players. But in your core business, branded business, the sourcing is from your manufacturing only.

Mohit Jain: Yes.

Shraddha Agarwal: That branded business sourcing is from other countries, other players. But in your core business, branded business, the sourcing is from your manufacturing only.

Shradha Agrawal: That branded business sourcing is from other countries, other players. But in your core business, branded business, the sourcing is from your manufacturing only.

Speaker #2: Correct. Correct. So again, just hear me out. In our branded business. Let's say if we are making a if we are selling a towel or a curtain, which we do not produce at Indo Count, those are sourced from outside.

Mohit Jain: Correct. So again, just hear me out.

Mohit Jain: In our branded business,

Mohit Jain: let's say if we are selling a towel or a curtain, which we do not produce at Indo Count,

Mohit Jain: those are sourced from outside. But if we are selling a bed sheet, that is sourced within our own company from our manufacturing facility in Kolhapur or Bhilad, and that number is coming under the new business, under brands.

Speaker #2: But if we are selling a bed sheet that is sourced within our own company from a manufacturing facility, then Kolhapur or Bilad, and that number is coming under the new business, under brands.

Speaker #7: Exactly. So, in your total 30 percent branded business, how much would be sourced from outside?

Shraddha Agarwal: Got it. So in your total 30% branded business, how much would be sourcing from outside?

Shradha Agrawal: Got it. So in your total 30% branded business, how much would be sourcing from outside?

Speaker #2: We've said our total branded business is 20%.

Mohit Jain: We have said our total branded business is 20%.

Speaker #7: 20 percent, sorry.

Shraddha Agarwal: 20%, sir. Yes.

Shradha Agrawal: 20%, sir. Yes.

Speaker #2: You know, irrespective of anything, our total brand business this quarter has been roughly around ₹125 crore.

Mohit Jain: Irrespective of anything, and our total brand business this quarter has been roughly around INR 125 crores.

Speaker #7: Mm-hmm.

Speaker #2: So, 10 percent is under these new brands, if you take it as a part of the whole company, roughly.

Mohit Jain: 10% is under these new brands. If you take it as a part of the whole company, roughly.

Speaker #7: Exactly. Got it. Okay, thanks for this clarification. Thank you. The next question is from Saranj Gupta of Swan Investments. Please go ahead.

Shraddha Agarwal: Got it. Okay. Thanks for this clarification. Thanks.

Shradha Agrawal: Got it. Okay. Thanks for this clarification. Thanks.

Operator 1: Thank you. The next question is on the line of Saransh Gupta from Swan Investments. Please go ahead.

Operator: Thank you. The next question is on the line of Saransh Gupta from Swan Investments. Please go ahead.

Speaker #3: Thank you, both of you. Sir, I just wanted one clarification. As India's relative tariff position in the US is improving, how are we positioning Indo Count ahead of the upcoming trade agreement?

Saransh Gupta: Thank you for the opportunity, sir. Sir, I just wanted one clarity. Sir, as India's relative tariff position in the US is improving, how are we positioning Indo Count ahead of the upcoming trade agreement? Are we seeing customers shifting towards India? Is there a bigger opportunity that is available for market share gain or still there would be a price mix?

Speaker #3: Are we seeing customers shifting towards India? And is there a bigger opportunity available for market share gain, or will there still be a price mix?

Speaker #2: Well, see, India is extremely well positioned. Even at a 50 percent tariff, we as a company did not lose a single order or a single customer.

Mohit Jain: You see, India is extremely well-positioned. Even at 50% tariff, we as a company did not lose a single order or a single customer. So now with at 10%, India as a country is extremely competitively placed. Having said that, even all our neighboring countries, everybody's between 10% to 12.5%. So nobody's at a major disadvantage or an advantage, let's say. China erstwhile has a Section 301 tariff, which has been there in 2019. So that has always remained there. From our product category perspective, we are really not competing on those product categories at this point in time. So today, in our product category of bed linen, home textiles, I would say in general, India was extremely well-positioned and continues to be extremely well-positioned.

Speaker #2: You know, so now with it at 10 percent, India as a country is extremely competitively placed. Having said that, even our neighboring countries, everybody is between 10 to 12 and a half percent.

Speaker #2: You know, so nobody is at a major disadvantage or advantage, let's say. China, erstwhile, has a 301 tariff, which has been there since 2019.

Speaker #2: So, that has always remained there. From our product category perspective, we are really not competing in those product categories at this point of time.

Speaker #2: You know, so today, I mean, in our product category of bed linen, I mean, home textiles, I would say in general, India was extremely well positioned and continues to be extremely well positioned.

Speaker #3: Understood, sir. Thank you so much.

Saransh Gupta: Understood, sir. Thank you so much.

Speaker #7: Thank you. We'll move on to the next question. That is from the line of Raman KB from Secun Investments. Please go ahead.

Operator 1: Thank you. We'll move on to the next question that is on the line of Raman KV from Secan Investments. Please go ahead.

Operator: Thank you. We'll move on to the next question that is on the line of Raman KV from Secan Investments. Please go ahead.

Speaker #3: Hello, sir. Thank you for the follow-up. I just have one question. Sequentially, our interest cost has declined. Have we repaid any of the borrowings, or have we refinanced the existing borrowings?

Raman Venkata Kerti: Hello, sir. Thank you for the follow-up. I just have one question. Sequentially, our interest costs have declined. Have we repaid any of the borrowings, or have we refinanced the existing borrowings? Going forward, what will be the interest cost for the year?

Raman KV: Hello, sir. Thank you for the follow-up. I just have one question. Sequentially, our interest costs have declined. Have we repaid any of the borrowings, or have we refinanced the existing borrowings? Going forward, what will be the interest cost for the year?

Speaker #3: And going forward, what will be the interest cost for the year?

Speaker #2: See, in Q4, we had a one-time hit of around ₹13 crore on a GST issue. That has been taken; it's not there in Q1.

Mohit Jain: In Q4, we had a one-time hit of around INR 13 crores on a GST issue that has been taken. Now it is not there in Q1, so that is the only change. Otherwise, our interest cost remains flat, more or less.

Speaker #2: So that's the only change. Otherwise, our interest cost remains flat, more or less.

Speaker #3: So, around 70 crores of interest payment will be there during this year—70 to 80 crores, right?

Raman Venkata Kerti: Around INR 70 crores of interest payment will be there during this year, INR 70 to 80 crores, right?

Raman KV: Around INR 70 crores of interest payment will be there during this year, INR 70 to 80 crores, right?

Speaker #2: Yeah. Similarly, yeah.

Mohit Jain: Yeah. Same level, yeah.

Speaker #3: And if I can ask, can you tell us what our weighted average cost is on that?

Raman Venkata Kerti: If I can ask, what is our weighted average cost on that?

Raman KV: If I can ask, what is our weighted average cost on that?

Speaker #2: Raman, I mean, our interest cost—we are at a ₹30 crore run rate per quarter, roughly. So we are around ₹120 crores, not ₹70 crores.

Mohit Jain: Raman, our interest cost, we are at a 30 crore run rate per quarter.

Mohit Jain: We are around 120 crores, not 70 crores.

Speaker #3: Yeah. Sorry, sorry. Yeah, yeah, 120—my bad. So what's our interest cost at?

Raman Venkata Kerti: Yeah. Sorry. Yeah. 120, my bad. So what's our interest cost at?

Raman KV: Yeah. Sorry. Yeah. 120, my bad. So what's our interest cost at?

Speaker #2: It depends, bank to bank, you know. But to be competitively, we have a rating of A+, and we are competitively priced, you know.

Mohit Jain: Depends bank to bank. But we have a rating of A+ and we are competitively priced. We cannot tell you our exact cost because it will change from bank to bank. Between 6% to 7% should roughly range.

Speaker #2: I mean, we cannot tell you our exact cost because it will change from bank to bank, you know. It's in the range of roughly 6 to 7 percent.

Speaker #3: Understood, sir. Thank you.

Raman Venkata Kerti: Understood, sir. Thank you.

Raman KV: Understood, sir. Thank you.

Speaker #7: Thank you. The next question is on the line of Pranav Malhotra from Starship India. Please go ahead.

Operator 1: Thank you. The next question is on the line of Pranav Malhotra from Skyroot Aerospace. Please go ahead.

Operator: Thank you. The next question is on the line of Pranav Malhotra from Skyroot Aerospace. Please go ahead.

Speaker #3: Yeah. Hi. Thank you for the opportunity. My question pertains to the margin. Basically, do we see 15 percent as the ceiling? Because, you know, you're going towards branded.

Pranav Malhotra: Yeah. Thank you for the opportunity. My question pertains to the margin. Basically, do we see 15% as the ceiling because you are going towards branded and also chasing like, e-commerce, I believe on Amazon, as you mentioned. So do we believe that we can break through the 15%, or is that going to be a ceiling?

Speaker #3: And also chasing e-commerce, I believe, on Amazon, as you mentioned. So do we believe that we can break through the 15% mark, or is that going to be a ceiling?

Speaker #2: No, Pranav, we don't have any ceiling in our mind. You know, I mean, we have to take one step at a time. You know, we are coming through a tough tariff situation, and, you know, so we are at least—

Mohit Jain: No, Pranav, we do not have any ceiling in our mind. We have to take one step at a time. We are coming through a tough tariff situation, and so we are at least-

Speaker #3: Sorry, ma'am, this is for the long term—I'm asking not just for this year.

Pranav Malhotra: Sorry, this is for the long term, I am asking. Not just for this year.

Speaker #2: No. So for the long term, you can say that right now our target is to stabilize at 15% to 16% margins as a company, as a whole.

Mohit Jain: No. For long term, you can say right now our target is to stabilize at 15% to 16% margins as a company as a whole. We will keep recalibrating this as we move on and we understand more as to how the business is progressing, how markets are progressing.

Speaker #2: And we'll keep recalibrating this as we move on. And, you know, we'll understand more as to how the business is progressing, how markets are progressing.

Speaker #3: Okay, so thank you so much. And just one question on the US ground situation: we had read that, you know, the retail sentiment has been improving.

Pranav Malhotra: Okay, sir. Thank you so much. Just one question on the US ground situation. We had read that the retail sentiment has been improving, and we believe that we can do better numbers in the macros. Do we also view that in the core volumes, like 110 meters, we can exceed that? Or obviously as we see developments throughout the year.

Speaker #3: And we believe that we can do better numbers, like in the macros. So, do we also view that, in the core volumes—like 110 meters—we can exceed that?

Speaker #3: Or, like, you know, as we see developments throughout the year, obviously?

Speaker #2: At this point in time, we are comfortable with 105 to 110 million meters, keeping in mind that customer off-take will be on the positive side.

Mohit Jain: At this point of time, we are comfortable with 105 to 110 million meters.

Mohit Jain: Keeping in mind that customer offtake will be on the positive side.

Speaker #3: Okay, sir. Thank you. Thank you so much.

Pranav Malhotra: Okay, sir. Thank you. Thank you so much.

Speaker #7: Thank you. A reminder to the participants: anyone wishing to ask a question may please press star and one. Participants, if you wish to ask a question, you may please press star and one.

Operator 1: Thank you. A reminder to the participants, anyone wishing to ask a question, may please press star and 1. Participants, if you wish to ask a question, you may please press star and 1. Ladies and gentlemen, due to time constraint, we take that as our last question. I now hand the conference over to the management for their closing comments.

Operator: Thank you. A reminder to the participants, anyone wishing to ask a question, may please press star and 1. Participants, if you wish to ask a question, you may please press star and 1. Ladies and gentlemen, due to time constraint, we take that as our last question. I now hand the conference over to the management for their closing comments.

Speaker #7: Ladies and gentlemen, due to time constraints, we will take that as our last question. I will now hand the conference over to the management for closing comments.

Speaker #2: Thank you, everyone, for joining us today. We hope we've been able to address all your queries. Should you have any further questions, please feel free to get in touch with SG.

Mohit Jain: Thank you everyone for joining us today. We hope we have been able to address all your queries. Should you have any further questions, please feel free to get in touch with SGA, our investor relation advisors. Thank you once again for your continued interest and support. We look forward to connecting with you on our next call. Thank you.

Speaker #2: Our investor relations advisors, thank you once again for your continued interest and support. We look forward to connecting with you on our next call.

Speaker #2: Thank you.

Speaker #7: Thank you, members of the management team. Ladies and gentlemen, on behalf of Indo Count Industries Limited, that concludes this conference call. We thank you for joining us. You may now disconnect your lines.

Operator 1: Thank you, members of the management team. Ladies and gentlemen, now on behalf of Indo Count Industries Limited, that concludes this conference call. We thank you for joining us, and you may now disconnect your lines. Thank you.

Operator: Thank you, members of the management team. Ladies and gentlemen, now on behalf of Indo Count Industries Limited, that concludes this conference call. We thank you for joining us, and you may now disconnect your lines. Thank you.

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Q1 2027 Indo Count Industries Ltd Earnings Call

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