Nuvama Gives A BUY Call For Indo Count; Sees Upside Of 22% With A Target Price Of Rs. 433

Highlights of financial Results:

Revenue rose 35% YoY to INR1,093cr (est. INR850cr) on higher volumes (up 40% to 28.6mn metres). Average realisation fell 3% YoY owing to a correction in cotton prices.

Gross margin contracted by 30bp YoY to 55% due to a change in the product mix. EBITDA grew 15% YoY on higher revenue (INR165cr versus our estimate of INR146cr), with a 280bp contraction in EBITDA margin to 15.1% on lower gross margin and higher marketing expenses (up 200bp).

PAT fell 3% YoY to INR92cr (est. INR92cr) on lower other income.

Revenue/EBITDA/PAT grew 18%/23%/22% in FY24 on higher volumes and positive operating leverage.