Shares of Indo Count Industries (ICIL) continued to rise, gaining 11% in intraday trade on Monday, touching a 16-month high of Rs 214.40 on the BSE. The stock has soared 36% over the past four sessions after the company reported strong March quarter (Q4FY23) earnings. It was quoted at its highest level since February 2022.

ICIL is one of India’s largest manufacturers and exporters of Home Textiles, with a wide range of products covering Bed Sheets, Quilts and Bedding. It ranks in the top 9 of the 10 largest large retailers in the United States.

In Q4FY23, ICIL’s profit after tax (PAT) rose 11% YoY and 2.5 times QoQ to Rs 947 crore. Revenue rose 23% year-on-year to Rs 8,071 crore. EBITDA margin increased 324 basis points year-over-year to 17.9%.

The company’s sales volume (including GHCL units) rose 16% year-on-year to 20.4 million meters, compared with 17.6 million meters in the fourth quarter of FY2022. The average realized price rose 6% YoY to Rs 387 per metre.

The trajectory of home textiles demand, which has slowed considerably in key regions such as the US, UK and Europe, is gradually picking up pace (though retailer inventories continue to remain high).

ICIL reported a healthy improvement in operating performance in Q4FY23. Gross margin jumped 381 basis points year-over-year to 56%, which was a positive surprise.