Shares of Indo Count Industries Ltd, a leading home textiles manufacturer, gained over 10 percent on Wednesday after the company reported revenue growth in excess of 20 percent for the March quarter compared to the year-ago period. The stock is also surging on higher volumes, with the number of shares traded being 12 times higher than the daily average volume.

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Indo Count's revenue increased by 23.4 percent in the March quarter to Rs 807 crore from Rs 654 crore last year. Operating profit or EBITDA increased by 50.7 percent to Rs 144.2 crore from Rs 95.65 crore during the year-ago quarter.

The company's EBITDA margin improved to 18 percent from 15 percent last year, while net profit also increased by 11 percent to Rs 94.7 crore from Rs 85.3 crore in the same quarter last year. When compared to the December quarter, net profit was higher by 2.5 times.

Indo Count also managed to bring its net debt down to Rs 589 crore at the end of financial year 2023 from Rs 900 crore in financial year 2022. The company's debt-equity ratio improved to 0.33 from 0.57 in March 2022.

The company’s sales volumes grew 16 percent year-on-year and 40 percent quarter-on-quarter during the March quarter. Indo Count said that it has expanded capacity in the last two years to become the leader in the bed linen segment. Capex over the last two years has been around Rs 1,094 crore.

The company also announced a final dividend of Rs 2 per equity share of face value of Rs 2 each.

Shares of Indo Count Industries are trading 10.2 percent higher at Rs 173.65. The stock is trading at a 52-week high.