Indo Count Industries shares hit fresh 52-week high on highest-ever quarterly revenue in Q2

Shares of Indo Count Industries surged over 8% to hit a new 52-week high of ₹302.80 apiece on Tuesday. This impressive performance came on the heels of the company's September quarter earnings, which exceeded market expectations.

The company released its Q2FY24 numbers after market hours on Monday, reporting the highest-ever quarterly revenue of ₹1,033 crore, crossing the ₹1,000 mark in revenue for the first time in history, on the back of a surge in volumes. During the same period of last year, the company reported a revenue of ₹849 crore. The Q2FY24 revenue shows a growth of 22% as compared to last year.

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The company's volume jumped 40% YoY to 28.7 million metres in Q2 FY24, prompting it to revise its FY24 volume guidance to 90–100 million metres, up from the previous range of 85–90 million metres.

Further, it reported its record-high EBITDA of ₹189 crore for Q2 FY24, showcasing a substantial 57.5% improvement compared to the ₹120 crore recorded in the same quarter the previous year. The EBITDA margin also expanded by 420 basis points, reaching 18.3% in Q2 FY24.

On the bottom line, the company reported a 70.14% jump in its consolidated net profit to ₹114 crore as compared to a net profit of ₹67 crore in the corresponding quarter of last year.

The company's shares this year so far have delivered a multi-bagger return of 119.25% as the stock surged from ₹135 per share to ₹296. Over the past five years, the stock has delivered an impressive return of 371%.

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Indo Count Industries is a small-cap stock with a market capitalisation of ₹5,862 crore. The company is one of India’s largest home textile manufacturers and exporters, with an extensive product range that spans across bed sheets, quilts, and bed linen. It has a presence in nine out of the 10 top big-box retailers in the US.

Looking ahead, Indian textile manufacturers stand to benefit from the government's initiatives like Atmanirbhar Bharat, PLI schemes, and textile parks. The government of India has released a draft of the second round of the production-linked incentive (PLI 2.0) scheme for the textile sector.

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According to the company, this scheme will attract investment and reduce the import dependence on textile accessories. Furthermore, the company expects that the ban on cotton from the Xinjiang region could drive higher demand for Indian cotton textiles.

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Meanwhile, the government has recently executed FTAs with Australia and UAE, and ongoing negotiations with the UK, Canada, EU, and GCC present new market opportunities for Indian home textile exports.

At 1:40 PM, the stock was trading with a gain of 5.84% at ₹296.45 apiece. 

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