Indo Count Industries surges 10 % post Q2

One of India’s largest Home Textile manufacturer has posted a good set of numbers on Friday, November 25 post market hours. Company has posted a top-line growth of 3.3 per cent with bottom- line growing by close to 19 per cent.

Reacting to the results, shares of Indo Count Industries have surged by close to 10 per cent in early trade buoyed by quarterly earnings. Textiles segment coupled with consistent cash accruals generated in the business has led to a strong operational and financial performance.

Operationally the quarter was  in line with street estimates as it has seen an uptick of 9.8 per cent with margins expanding by 130 basis points for the quarter ending September 30.

Stock has been trading in a range for the past month since the stock split. However, post the Q2 earnings, the stock has come out of the resistance levels and seems to be on an up-swing.

Going ahead, impact of demonetisation on sales and export numbers would be keenly watched. Addition of new clients can also be a positive for the stock post Welspun India fiasco which could give Indo Count advantage in terms of new retailers.