Indo Count net falls 21% despite higher income

MUMBAI: Leading bed linen manufacturer Indo Count Industries on Monday reported a 21 per cent fall in net profit to Rs 67 crore for the September quarter despite higher realization and healthy margins.

Total income rose 11 per cent to Rs 849 crore in the reporting quarter, the company said, adding and had a healthy operating margin of 16.6 per cent, up from 14.1 per cent in the year ago period.

Chairman Anil Kumar Jain said despite global challenges, the company could sustain the business momentum across markets and categories but did not say why the profit has fell sharply.

Sales volume stood at 20.5 million meters (mm), up from 18.9 mm as it increased it home textile capacity from 90 mm to 108 mm, and the spinning capacity to 68,000 spindles with a capex of Rs 270 crore during the quarter.

He said its ecommerce vertical has gained momentum and hopes to further build on it and hopes to bet 10 percent of revenue from online sales by the end of this fiscal.

Jain said the company has reduced net debt to Rs 762 crore from Rs 906 crore in March.