Indo Count Industries Ltd Management Discussions

<dhhead-MANAGEMENT DISCUSSION & ANALYSIS</dhhead-

Global Economic Performance and Outlook

The global economy exhibited notable resilience in the fiscal year 2024, achieving a growth rate of 3.2%. Global inflation exhibited signs of moderation, with rates declining to approximately 2% across advanced economies, aligning with central bank targets. This stabilization enabled major institutions like the Federal Reserve and the European Central Bank to adopt more accommodative monetary policies, fostering sustainable economic growth.

Consumer expenditure surged to $77.6 trillion, while global energy consumption increased by 2.2%, largely driven by BRICS nations. Manufacturing growth remained uneven - China expanded by over 5%, while Mexico and Germany faced contractions. The U.S. labour market showed mixed signals, whereas China?s trade surplus neared $1 trillion, reinforcing its industrial sector dominance.

Despite economic expansion, global debt reached a record $318 trillion by the end of 2024, marking the first rise in the debt-to-GDP ratio since 2020. This surge, attributed to slower growth and increased borrowing, raises concerns over fiscal sustainability and market stability.

The dynamics of global trade continued to evolve, with digital services experiencing robust growth while traditional goods faced challenges due to geopolitical tensions and protectionist policies. This shift underscores the increasing influence of the digital economy in global commerce.

Currency fluctuations also played a key role - the U.S. dollar depreciated by 4.2%, boosting U.S. export competitiveness

while raising import costs. Meanwhile, de-dollarization trends continued reshaping global trade policies and economic strategies.

These developments highlight the global economy?s adaptability in navigating shifting market conditions and emerging opportunities.

Economic Outlook for 2025 and Beyond

The global economic forecast for fiscal year 2025 presents moderate growth projections tempered by prevailing uncertainties. The International Monetary Fund (IMF) predicts global growth to be 3.3% for 2025 and 2026, well below the historical 3.7% average recorded between 2000 and 2019.

Global Inflation is expected to improve, declining from 6.4% in 2024 to 4.1% in 2025, and further to 3.5% in 2026. This downward trend may provide central banks greater flexibility in monetary policy, potentially fostering economic stability.

However, multiple risks could disrupt this trajectory, with geopolitical tensions, trade disputes, and uncertainty in manufacturing sectors remaining as key challenges.

As markets navigate these complexities, strategic policymaking and adaptability will be crucial in sustaining long-term economic stability and growth.

U.S. Economic Performance & Outlook for 2025

The U.S. economy demonstrated remarkable resilience in fiscal year 2024, maintaining growth and stability despite prevailing challenges. GDP expanded at an annual rate of 2.3% in Q4 2024, following a 3.1% increase in Q3, primarily driven by strong consumer and government spending, though tempered by declining investments.

Job growth averaged 160,000 new positions per month, with forecasts indicating a slowdown to 100,000 jobs monthly in 2025. Inflationary pressures persisted, as evidenced by a sharp increase in the Consumer Price Index (CPI) in January 2025, leading to dampened consumer spending and confidence. This raised concerns about stagflation, characterized by high inflation alongside sluggish growth.

Despite a 3.1% GDP growth in Q3 2024, consumer spending dipped in early 2025, accompanied by a higher savings rate, signalling rising economic uncertainty that could affect Q1 GDP performance.

The U.S. manufacturing sector showed divergent trends, with high-tech industries posting moderate gains, while traditional manufacturing struggled due to weak demand and rising input costs. Trade disputes and new tariffs exacerbated production challenges, impacting global competitiveness.

In December 2024, the Federal Reserve lowered the federal funds rate by 25 basis points to a target range of 4.25%- 4.50%, leading to a 4.2% drop in the U.S. Dollar Index, the worst start to a fiscal year since 2008.

On the fiscal front, the House of Representatives passed a major budget resolution that included significant tax and spending reductions, alongside increased funding for military and border security initiatives. The policy sparked debate over its potential impact on the budget deficit and long-term economic stability.

Outlook- United States:

Looking ahead, Fiscal Year 2025 (FY25) presents a cautious yet uncertain growth trajectory. The Congressional Budget Office (CBO) projects U.S. GDP growth to slow to 1.9%, down from 2.3% in 2024.

Inflation is expect to moderate and with global projections signaling a decline, the U.S. fed could have greater flexibility in monetary policy, potentially supporting economic recovery.

However, geopolitical tensions, fiscal imbalances, and shifting consumer sentiment remain key risks. Japan?s continued contraction in factory activity, now spanning eight consecutive months, underscores vulnerabilities within global supply chains, potentially influencing U.S. trade performance.

As the U.S. navigates economic uncertainties, policymakers must focus on ensuring financial stability, fostering resilience, and adapting strategies to sustain long-term growth.

European Union Economic Landscape: Challenges, Adjustments & Outlook

The European economy in FY24 navigated a mix of challenges and opportunities, shaped by geopolitical events, policy shifts, and structural reforms. The Eurozone?s economy stagnated, recording zero growth in Q4 2024, falling short of the expected 0.1% increase and declining from 0.4% in the previous quarter. As a result, the overall annual growth rate stood at 0.7%.

Germany, Europe?s largest economy, faced notable difficulties—its GDP contracted by 0.2% in Q4 2024, primarily due to weakness in the manufacturing sector. This downturn highlighted ongoing pressures on industrial production and trade competitiveness.

In response to sluggish economic performance, the European Central Bank (ECB) lowered its benchmark interest rate to 2.75% to stimulate growth and encourage investment.

Geopolitical events, and particularly the conflict in Ukraine, continue to shape Europe?s economic landscape. Instead of a peace dividend, heightened defence expenditures have fuelled economic optimism, contributing to sectoral growth in military-related industries.

Despite ongoing economic struggles, FY24 marked a crucial period for policy shifts, increased defence spending, and broader efforts to revitalize growth amid domestic and international uncertainties. The effectiveness of these strategies, alongside Europe?s ability to manage geopolitical tensions, will be critical in shaping the region?s future economic trajectory.

Outlook- European Union:

Looking ahead, FY25 is projected to bring a modest economic recovery. The European Commission forecasts EU real GDP growth at 1.5%, driven by rising consumption and a rebound in investment following a slow 2024.

Inflation across the Eurozone continues to decline, easing financial pressures and supporting adjustments in monetary policy aimed at boosting economic growth. The ECB is expected to implement a sixth consecutive interest rate cut, fostering a more favourable borrowing and investment climate.

However, Europe still faces external risks, including proposed U.S. tariffs on EU imports, which could dampen regional trade momentum. Additionally, geopolitical

uncertainties and rising defence spending pose persistent challenges to economic stability and investment flows.

The European economy remains at a crossroads, balancing policy-driven recovery efforts against external pressures. Success in navigating trade complexities, monetary policy shifts, and geopolitical disruptions will ultimately shape the trajectory of Europe?s economic performance in the coming years.

Indias Economic Performance & Growth Outlook

India?s economy displayed remarkable resilience and steady growth throughout fiscal year 2024-25, as reflected in key economic indicators. The country?s GDP expanded by 7.4% in the January - March 2025 quarter, lifting the annual GDP print to 6.5%. While slightly below analysts? expectations, this uptick was fuelled by higher government and consumer spending, strong Kharif crop output, and a resurgence in rural demand.

The HSBC India Manufacturing PMI remained above the 50.0 expansion threshold throughout FY2024-25 indicating continuous growth in the manufacturing sector, though it fluctuated in intensity. Starting at 58.8 in April 2024, the PMI hit a high of 59.1 in March 2025, the strongest in 16 years, driven by robust new orders and exports. However, it dipped to a low of 56.3 in February 2025, reflecting slower production and input purchasing.

To stimulate economic growth, the Reserve Bank of India (RBI) implemented its first interest rate cut in five years, with further reductions anticipated to support financial stability amid global uncertainties.

The Indian government introduced key fiscal measures to boost consumption and investment, addressing previous slowdowns in private investment and job creation. The International Monetary Fund (IMF) maintained India?s classification as "stabilized" throughout 2024, citing exchange rate flexibility as a critical tool for mitigating external shocks and fostering financial market development.

Indian Outlook: Growth & Economic Expansion

India?s nominal GDP is forecasted to rise from an estimated $4 trillion in FY25 to over $6 trillion by FY30. The RBI projects GDP growth at 6.5% in FY26, with quarterly growth ranging between 6.7% and 7%. Key drivers of India?s potential growth include strengthening manufacturing and export capabilities, expanding services exports, and accelerating digitalization to enhance productivity and efficiency.

India remains poised as the fastest-growing major economy, with UBS projecting it to become the world?s third-largest consumer market by 2026 and the third-largest economy by 2027, trailing only the U.S. and China. The RBI estimates headline inflation to be 4.2% in FY26, reinforcing a stable price environment conducive to economic growth.

While India?s economic trajectory remains positive, challenges persist, including the need to generate employment for the expanding workforce, navigate an evolving global economic landscape, and manage the impact of automation on labour markets.

India?s macroeconomic trends present both opportunities and strategic pathways for sustained growth, global expansion, and long-term value creation. As the country continues to refine its economic policies and strengthen market fundamentals, it remains positioned for robust development and emerging leadership in the global economy.

Global Textile Industry: Innovation, Sustainability & Future Growth

The global textile market continues to experience rapid expansion, driven by economic recovery, technological advancements, and shifting consumer preferences. In fiscal year 2024, the industry saw robust growth, with a market size of $640.43 billion, projected to reach $696.16 billion by 2025, reflecting an 8.7% CAGR.

While traditional markets such as Europe and North America remain strong, emerging regions like Southeast Asia and Africa are becoming key drivers of future growth. Sustainability concerns have propelled the adoption of eco-friendly materials, including organic cotton and recycled fibres, while companies embrace circular economy models to minimize waste and reduce carbon footprints.

Technology-Driven Transformation

The digital revolution is reshaping the textile industry, optimizing supply chains through smart manufacturing, IoT integration, big data analytics, automation, and AI. Innovations such as digital textile printing inks

and blockchain-based manufacturing are enhancing transparency, efficiency, and sustainability.

Cost dynamics and shifting trade policies have led manufacturers to reconfigure supply chains, relocating production to more competitive markets in Southeast Asia and Africa. Meanwhile, the E-commerce boom, particularly in India, has expanded market reach, strengthening demand for traditional garments and customizable fashion.

Key Growth Drivers

Several factors continue to fuel the industry?s upward trajectory:

• Urbanization and rising global population, increasing textile consumption

• E-commerce expansion and digital retail penetration, broadening accessibility

• Advancements in smart textiles and fabric technology, boosting product innovation

• Consumer demand for sustainability, pushing brands toward organic fibres and non-woven textiles

• Automation and AI-powered manufacturing, reducing costs and improving efficiency

The industry?s strategic partnerships and investments in innovation are crucial for long-term success. Collaborations with tech firms have led to the development of smart fabrics with enhanced functionality, while supply chain digitization improves agility and resource utilization.

Outlook- Global Textile Market

Looking ahead, the global textile market is set for continued expansion, expected to reach $915.96 billion by 2029, with a 7.1% CAGR. Growth will be propelled by technological advancements, evolving trade strategies, and heightened sustainability efforts.

As industry players adapt to digital transformation, eco-conscious production, and changing consumer behaviours, the global textile sector will remain a dynamic and competitive force, shaping the future of fashion, commerce, and innovation.

U.S. Textile Market: Innovation, Challenges & Future Growth

The U.S. textile market continues to evolve, reaching $188.3 billion in 2024 and projected to grow to $277.4 billion by 2033, reflecting a 4.1% CAGR from 2025 to 2033.

During fiscal year 2024, U.S. textile and apparel imports totalled $124.9 billion, with an average duty rate of 16%. However, domestic manufacturers face increasing competition from de minimis shipments - small, duty-free packages - flooding the market. Approximately 4 million shipments enter the country daily, posing significant challenges for local producers.

Meanwhile, U.S. textile and apparel exports declined by 2.98% in 2024, falling to $22.617 billion, compared to $23.617 billion in 2023. This contraction reflects shifting global trade dynamics and competitive pressures impacting the industry?s international footprint.

Sustainability & Technological Advancements

Sustainability has become a key priority, with Gen Z consumers driving demand for ethical and eco-friendly textiles. This shift has led to innovations in traceable supply chains, circular fashion models, and sustainable fabric production.

Advances in artificial intelligence, automation, and robotics are reshaping textile manufacturing, improving efficiency, precision, and sustainability. Smart textiles featuring moisture-wicking and antimicrobial properties are gaining traction, reflecting evolving consumer preferences for performance-driven fabrics.

Industry Outlook & Growth Opportunities

Despite challenges such as import competition and economic uncertainties, the U.S. textile industry remains poised for expansion. Its commitment to sustainability, technological innovation, and adaptability will be critical in driving growth into FY25 and beyond.

As the market integrates advanced materials, Al-powered production, and digital supply chain solutions, continued progress in sustainability and efficiency will reinforce the industry?s long-term competitiveness in the global economy.

European Union Textile Market: Innovation, Sustainability & Growth Trends

The European Union (EU) textile industry navigated a mixed economic landscape in 2024, with modest growth driven primarily by external demand, while consumer spending and investment remained subdued. The EU saw declining exports, yet trade surpluses increased, highlighting shifting global trade dynamics.

The sector faced challenges of oversupply and weakened demand, particularly in France, Germany, Italy, and Spain, where textile and machinery industries struggled. Despite these hurdles, sustainability initiatives gained momentum, reshaping industry priorities.

In 2024, the EU?s apparel imports totalled $92.56 billion, reflecting a 1.53% increase over the previous year. While import volumes surged by 8.98%, average unit prices declined by 6.83%, intensifying price pressures. Bangladesh, a leading supplier, expanded its apparel exports to the EU by 4.86%, reaching $19.77 billion, despite a 4% drop in unit prices, underscoring profitability challenges for manufacturers.

Technology & Sustainability Driving Transformation

To enhance efficiency and quality control, textile manufacturers are adopting computer vision technology for fabric pattern recognition and colour matching, a shift expected to reduce production costs and improve accuracy.

Sustainability remains a central focus, driving consumer interest in organic and recycled materials. Major global brands introduced textile recycling initiatives aimed at reducing carbon emissions by 85%, with a particular focus on polyester waste minimization. These efforts align with EU regulations promoting environmentally conscious production.

Future Outlook & Industry Expansion

The European textile market size was at $261.7 billion in 2024 and is projected to grow to $409.4 billion by 2033, representing a 4.6% CAGR from 2025 to 2033.

Germany has established itself as a leading market player, commanding over 20.7% of the total industry share in 2024. This dominance is driven by rising demand for sustainable textiles, advancements in manufacturing technologies, and the strength of Europe?s fashion and home furnishings sectors.

Despite economic fluctuations and trade challenges, the European textile industry remains poised for sustained , growth, fuelled by technological innovations, eco-friendly . production practices, and evolving consumer preferences. As brands adapt to digital advancements and environmental regulations, the sector will continue to redefine global textile standards.

The Indian Textile Market

India?s textile industry, one of the oldest and most diverse in the world, has a rich legacy that blends traditional craftsmanship with modern manufacturing. It encompasses both hand-spun and woven textiles alongside large-scale, capital-intensive mills. The industry?s strength lies in its extensive production base, covering a wide range of natural fibres such as cotton, jute, silk, and wool, as well as synthetic materials like polyester, viscose, nylon, and acrylic.

As a key driver of the national economy, textiles contribute 2.3% to India?s GDP, with expectations of doubling its share by 2030. The sector serves both domestic and international markets, reinforcing its reputation as a resilient and adaptable industry. To encourage investment and employment, the government has introduced strategic initiatives such as the Scheme for Integrated Textile Parks (SITP), the Technology Upgradation Fund Scheme (TUFS), and the Mega Integrated Textile Region and Apparel (MITRA) Park scheme, aimed at enhancing infrastructure, modernizing technology, and boosting global competitiveness.

In 2024, global geopolitical factors, including the Red Sea crisis and economic challenges in Bangladesh, influenced India?s textile industry. While supply disruptions in the Red Sea caused delays, instability in Bangladesh presented an opportunity for India to expand its market share internationally.

India?s textiles and apparel market currently at US$ 222.08 billions is poised to grow at a 10% CAGR, and projected to reach US$ 350 billion by 2030. Already the world?s third-largest exporter in this sector, India ranks among the top five global exporters across various textile categories. Export revenues are expected to hit US$ 100 billion in the near future, further cementing India?s global presence.

Exports & Imports:

During FY 2024-25 (April 2025 to March 2025), India?s textile and apparel exports, including handcrafts rose by 6.32% to reach US$ 36.61 billion, up from US$ 34.44 billion in FY 2023-24. This growth was driven by a 10.03% increase in apparel exports, which totaled US$ 15.99 billion, while other textile exports grew by 3.61% to US$

20.62 billion. Meanwhile, imports saw a slight 1% decline, totaling US$ 5.43 billion compared to US$ 5.46 billion in the previous fiscal year.

With strong government support and a dynamic market, India?s textile industry is set for significant expansion, ensuring its continued leadership on the global stage.

Home Textiles Market Overview

The home textiles industry encompasses fabrics used for furnishing and decoration, offering both functional and aesthetic appeal. These textiles, crafted from natural, synthetic, or blended fibres, are designed for durability and versatility.

With a wide range of products across various price points, the market caters to diverse consumer preferences. While affluent buyers seek premium quality and sophisticated designs, mid- and economy-segment customers prioritize affordability. Increasing awareness of sustainability, safety, and hygiene has driven demand for high-quality textiles with features such as stain resistance and flame retardancy. The industry is experiencing steady growth, influenced by evolving consumer trends.

Luxury home decor is on the rise, emphasizing comfort and wellness. Additionally, the market is shifting from synthetic fabrics to organic and recycled fibres, with a growing preference for eco-friendly materials backed by transparent certifications.

Global Home Textiles Market

The global home textiles industry was pegged at US$ 122 billion in 2023 and is projected to reach US$ 134 billion by the end of 2024, driven by changing lifestyles and a growing preference for stylish interiors. Online sales are reshaping the industry, complementing traditional brick-and-mortar stores. The Home textiles market is expected to grow at a CAGR of 5-5.5% through 2030.

Mid-Term Market Trends

The industry is evolving, influenced by shifting consumer preferences, sustainability concerns, and technological innovations. Over the next three to five years, several key trends will define the sector:

• Increased demand for eco-friendly textiles, such as organic cotton, bamboo, and recycled materials.

• Smart fabric innovations with temperature regulation, antibacterial properties, and moisture control.

• Growing adoption of Al-driven personalization, digital marketing, and virtual interior design tools.

• Rising interest in high-end, designer home textiles, particularly in mature markets such as Europe and North America.

• A surge in demand for artisanal, handwoven textiles, with European consumers valuing traditional craftsmanship.

U.S. Home Textiles Market

In 2024, the U.S. home textiles market faced modest growth amid economic uncertainty, with inflation and high interest rates impacting discretionary spending. Consumers leaned toward value retailers and private labels, while e-commerce and direct-to-consumer (DTC) brands gained traction through AI-driven shopping experiences. Sustainability remained a priority despite premium pricing.

Retailers maintained lean inventories following 2023?s overstock challenges, with fluctuations in cotton and freight costs pressuring margins. The market stabilized in the second half of the year as inflation eased, paving the way for a potential rebound in 2025 if interest rates decline. Growth will be driven by innovations in performance fabrics and expanding discount channels.

Looking ahead, the U.S. home textile market is set to grow from US$ 25.07 billion in 2025 to US$ 32.64 billion by 2030, reflecting a CAGR of 5.42%. Growth drivers include:

• Rising homeownership and increased consumer spending on home renovations.

• Expanding E-commerce channels, enhancing accessibility and market reach.

Indian Home Textiles Market

India?s home textiles industry is on a strong growth trajectory, projected to expand from US$ 10.78 billion in 2023 to US$ 23.32 billion by 2032, with a CAGR of 8.9%. It accounts for 8-9% of the global market, positioning India among the leading suppliers to the U.S. and the U.K.

Key product categories during exports bed linen which is ~25% of the global home textile trade, floor coverings which are ~19% cotton terry towels which make up ~12%, and kitchen, table and other furnishing articles which form ~16-18%. Indias leadership in these segments is supported by its manufacturing scale, design capabilities and growing demand for sustainable and value-added textile products.

Domestic Demand & Market Performance

Urbanization and rising disposable incomes are driving domestic demand for bed linen, curtains, carpets, and upholstery. Consumers are increasingly favouring high-quality, branded home textiles, with rapid housing development in metro and Tier 2 & 3 cities further boosting the industry.

In FY25, India?s home textiles industry was projected to witness 8-10% growth, supported by strong U.S. demand for Indian exports, increasing domestic market expansion, and the entry of global brands via direct investments and joint ventures.

For FY26, textile demand is expected to grow 9-10% YoY, driven by a 7% rise in private consumption. However, fluctuating cotton prices and a widening price gap between cotton and man-made fibres may pose challenges.

Future Prospects

India?s home textiles industry remains on a sustained growth path, supported by robust export demand, rising sustainability preferences, and an increasing inclination toward branded home furnishings.

With continued investments in innovation, eco-friendly materials, and quality-focused manufacturing, India?s home textile market is set to enhance its global presence and secure a leadership position in the industry.

Cotton Market Outlook

Despite regional challenges, global cotton trends indicate a strong and stable decade ahead.

Global Cotton Production

Cotton production worldwide is projected to reach 117 million bales (225 kgs. each) in 2024-25, marking an increase of 4.6 million bales from the previous season. Production is expected to grow at an annual rate of 1.5%, reaching approximately 130.7 million bales by 2033-34, representing a 16% increase over 2023-24.

As per 2023-24 statistics, the leading cotton-producing countries are:

• China: 24% of global production

• India: 22%

• Brazil: 13%

• United States: 11%

• Pakistan: 6%

• Australia: 5%

These six nations produce 80% of the worlds cotton and play a crucial role in shaping global cotton markets and meeting the rising demand.

Global Cotton Consumption

Cotton consumption is projected to reach 114.3 million bales in 2024-25, reflecting a 1.8 million bale increase from the previous year. Over the decade, consumption is expected to rise by 17.2 million bales (15%) above 2023-24 levels, maintaining a steady annual growth rate of 1.5%. This reinforces cotton?s essential role in textile and apparel industries worldwide.

U.S. Cotton Market

The 2024/25 marketing year (August 2024-July 2025) is expected to see growth in the U.S. cotton industry. The U.S. Department of Agriculture (USDA) forecasts cotton production at 14.3 million bales, an 18% rise (2.5 million bales) from last season.

Exports, however, are predicted to decline slightly - U.S. cotton exports for 2024/25 were 11.3 million bales (unchanged from the previous forecast), down 4% when compared to 2023/24 (450,000 bales) marking a 9- year low due to competitive pricing from Brazil and weaken demand in China.

Indian Cotton Market

The Cotton Association of India (CAI) projects India?s cotton production for 2024-25 at 301.15 lakh bales (170 kg each), reflecting an 8% decrease from the previous season?s 327.45 lakh bales. Government estimates suggest 299.26 lakh bales for the current season.

Supply & Trade Trends

• Total cotton supply estimate: 370.34 lakh bales.

• Imports projected to increase by 23.80 lakh bales to 39 lakh bales in 2024-25 from 15.2 lakh bales in 2023-24, compensating for declining domestic production.

• Domestic consumption: 305 lakh bales.

• Exports: Estimated at 17 lakh bales, down from 28.36 lakh bales last season.

With falling domestic output and exports, imports are set to play a larger role in maintaining supply equilibrium.

Government Initiatives

To address production challenges, the Indian government has launched a six-year programme aimed at boosting cotton yield in India is 461 kgs/Ha as against cotton yield in China at 2200 kgs/Ha. The focus is on developing extra-long staple (ELS) varieties, supported by research and technological innovation, to enhance productivity and reduce reliance on imports. A key initiative in this journey is the promotion of Kasturi Cotton Bharat- Indias premium cotton brand developed under strict quality benchmarks backed by QR-code based certification and block chain enabled traceability, Kasturi Cotton represents a bold step towards branding Indian cotton globally, ensuring consistency, transparency and superior quality across value chain.

By prioritizing sustainability, quality, and innovation, India is positioning itself to strengthen its cotton industry and remain competitive in the global market.

Operational and Financial Performance A Year Marked by Margin Discipline and Financial Stability Standalone performance Highlights

• Delivered sales volume of 106.40 Mn. meters for FY 25

• Achieved total income of RS.3,821.21 crores for FY 25

• EBIDTA stood at RS.513.52 crores for FY 25

• Achieved net profit of RS.237.21 crores for the year ended 31st March, 2025

• EPS stood at RS.11.98 Consolidated performance Highlights

• Achieved total income of RS.4,190.90 crores for FY 25 as against RS.3600.79 crores in previous year

• EBIDTA stood at RS.573.31 crores for FY 25

• Achieved net profit of RS.246.00 crores for the year ended 31st March, 2025

• EPS stood at RS.12.42

The Company has declared the dividend of 100% on the face value of RS.2/- per equity share by way of Final Dividend for 2024-25. The Company has been consistently declaring dividends for the past ten years. The Company operates only in a single segment, i.e., the textile segment.

Performance Highlights

Particulars	Standalone	Consolidated
	2024-25	2023-24	2024-25	2023-24
Revenue from operations	3,771.65	3,332.31	4,151.39	3,557.07
Other Income	49.56	46.24	39.51	43.72
Total Income	3,821.21	3,378.55	4,190.90	3,600.79
EBITDA	513.52	569.17	573.31	602.74
Less: Finance Cost	107.10	66.19	123.16	69.85
Less: Depreciation	83.02	71.88	116.57	82.58
Profit before Tax	323.40	431.10	333.58	450.31
Tax Expenses	86.19	110.80	87.58	112.39
Net Profit	237.21	320.30	246.00	337.92
Other comprehensive Income (net of tax)	(4.84)	2.07	(13.92)	(1.94)
Total Comprehensive Income	232.37	322.37	232.08	335.98
Basic & Diluted EPS (in H)	11.98	16.17	12.42	17.06

Key Financial Parameters

Particulars	Standalone	Consolidated
	2024-25	2023-24	2024-25	2023-24
Current Ratio	1.75	1.81	1.70	1.81
Debt-Equity Ratio	0.48	0.46	0.64	0.46
Interest Coverage Ratio	4.02	7.51	3.71	7.45
Net Profit Margin (%)	6.29	9.61	5.93	9.50
Return on Net Worth (%)	11.08	16.80	11.27	17.41
Operating Profit Margin (%)	11.20	14.59	10.84	14.32
Inventory Turnover Ratio	3.16	2.84	2.90	2.70
Debtors Turnover (Days)	72	62	50	47

Note: There is a variance higher than 25% on a Y-o-Y basis- *Due to higher capex, debt increased in proportion to equity **Due to decrease in Profits and increase in debt

Internal Control Systems and their Adequacy

The Company has established a robust internal control framework designed to achieve its operational, compliance, and reporting objectives effectively. Its policies and procedures are structured to align with both its current operations and future growth strategies.

To ensure continuous improvement and mitigate risks, the Company has implemented a comprehensive system of internal controls, complemented by external audits. These controls are supported by digital systems and applications that enhance oversight and accountability.

It has also taken a significant step in its digital transformation journey by migrating to SAP S4 HANA, a strategic move that will significantly enhance internal control systems.

Additionally, the adequacy of internal controls, financial policies, risk management strategies, key audit findings, and accounting compliance are regularly reviewed by the Audit Committee of the Board of Directors, ensuring transparency and accountability in operations.

Outlook and Strategy

In FY 2024-25, Indo Count remained focused on delivering resilient and sustainable growth across global markets. Despite ongoing macroeconomic and geopolitical uncertainties, consumer sentiment is stabilizing in key export destinations—particularly the United States and the United Kingdom—supported by moderating inflation and potential interest rate adjustments.

The U.S. remains Indo Count?s largest export market, contributing nearly 70% of total revenues. While recent

Reduced profit after tax due to product mix and sales realisation ##Due to decrease in Profit after tax and increase in Shareholders Fund discussions around potential tariff adjustments have l introduced a degree of volatility and uncertainty, the , Company remains cautiously optimistic and is closely j monitoring negotiations on trade tariffs and a Bilateral Trade t Agreement (BTA) between India and the U.S., expected to conclude by late 2025. This agreement could restore preferential access and stabilize long-term trade relations.

The landmark India-UK Free Trade Agreement (FTA) announced in May 2025 is a strategic inflection point. j With tariff elimination on over 99% of Indian exports, including home textiles, Indo Count gains a significant competitive edge. UK import duties on home textile products previously ranging from 8-12% have been fully removed, enabling stronger price positioning and margin expansion across Indo Count?s offerings.

Simultaneously, the pending India-EU FTA, expected to , conclude by mid-2026, is poised to unlock duty-free access 1 to key European markets.

The Company expects continued demand for premium home textile products, especially in bed linen, and is strategically positioned to capitalize on this opportunity. -i Building on the momentum from its recent acquisition of the l iconic Wamsutta brand and its portfolio of licensed brands,

1 Indo Count is set to unlock new value streams within these brands across both core and adjacent product categories— including towels and curtains. The licensed brand portfolio j - featuring trusted names such as Fieldcrest, Waverly and

Beautyrest - will continue to play a pivotal role in expanding the Company?s market share within the omnichannel , retail ecosystem, particularly across E-commerce, quick t commerce, and specialty channels.

At home in India, the Company aims to deepen its B2C presence through its brands Boutique Living and Layers, while introducing new lifestyle-focused product lines tailored to evolving consumer preferences.

As part of our ongoing sustainability journey, Indo Count continues to benefit from the successful commissioning of its 9.3 MW solar power plant in Bhilad, Gujarat, completed in the previous fiscal year. This facility now meets up to 90% of the unit?s energy requirements through renewable sources, significantly contributing to the Company?s goal of reducing greenhouse gas emissions. In FY 2024-25, we are building on this momentum by exploring additional clean energy opportunities and expanding sustainable practices across our manufacturing network.

With disciplined execution, strategic innovation, and a commitment to responsible business practices, Indo Count enters FY 2025-26 well-positioned to generate long-term stakeholder value and reinforce its leadership in the global home textiles industry.

Human Resources

The Company places a strong emphasis on the expertise and quality of its workforce, recognizing it as a key driver of success. With a commitment to equipping employees with the necessary skills to adapt to an evolving technological landscape, the Company fosters a culture of continuous learning and professional development.

The HR team plays a pivotal role in nurturing and retaining talent within the dynamic textile industry. Prioritizing employee safety, the Company conducts comprehensive facility audits to ensure workplace well-being. Additionally, plant safety committees have been established to proactively monitor and address safety concerns.

A supportive and rewarding work environment remains central to the Company?s values, where merit is recognized, and a positive workplace culture is actively promoted. As of 31st March 2025, the Company employed 3637 individuals,

with an additional 3523 personnel engaged through contractual arrangements.

Risk and Concerns

Indo Count?s risk management strategy is anchored in a clearly defined risk appetite, shaped by industry dynamics, liquidity considerations, and performance objectives within prudent volatility thresholds. These guardrails guide strategic and operational choices, enabling the Company to navigate uncertainties with confidence and control.

To safeguard its activities, Indo Count deploys a diverse set of mitigation tools, including currency hedging, scenario-based planning, and contingency protocols, tailored to specific risk exposures.

The Company embraces a fully integrated, enterprise-wide risk management framework, weaving risk consciousness into both long-term strategy and day-to-day execution. Risks are evaluated based on likelihood and severity and systematically assigned to responsible managers empowered to implement targeted mitigation actions.

A multi-tiered monitoring system, covering manufacturing operations and enterprise-wide processes, ensures continuous vigilance and early identification of emerging threats. Risk metrics are regularly reviewed and recalibrated to stay responsive to external shifts such as geopolitical tensions, economic fluctuations, and regulatory developments.

Governance of the framework is overseen by the Risk Management Committee, which evaluates its effectiveness and oversees mitigation strategies. The Audit Committee conducts an annual assessment of the risk management architecture to ensure continued alignment with the evolving business environment and global best practices.

Indo Count?s commitment to transparency, accountability, and resilience is at the core of its risk philosophy, driving informed decision-making, fostering stakeholder trust, and securing long-term value creation.