Nitco Limited (Nitco), India's most venerable tiles brand, today issued a business update for the month of November 2020.
Tile sales volume in November recorded a 21% sequential increase over the month of October 2020. With this, November 2020 sales volume has reached 111% of the tile volumes in November 2019. The company sees the momentum to continue during the next few months.
Opening of new showrooms
Nitco is one of the most recognizable tile brand among retail customers. The company continues to expand its retail footprint in select geographies. The company has identified 5 states where it plans to beef up its presence. These states are Kerala, West Bengal, Bihar, Tamil Nadu, and Uttar Pradesh. Nitco, in November 2020, opened two showrooms, one in Kolkata, and another in Panchkula, Chandigarh.
NITCO Le Studio, the new showroom at Panchkula, is Nitco's largest showroom. It is spread across 2,500 square feet and has on display a complete range of premium products including tiles, marble and mosaic, offering widest range to customers. The showroom in Kolkata, NITCO Le Studio, is located at East Kolkata township and will offer Nitco's premium range of tiles, marble and mosaic. Besides, these company owned showrooms, a franchise showroom was inaugurated in Banda, Uttar Pradesh in November.
With these additions, total count of Nitco's company owned and active franchise showrooms stood at 10 and 110 respectively.
Reinstatement of employees' salaries
With the onset of the pandemic and the resultant nation-wide lockdown March 2020 onwards, Nitco's business, like many other businesses, had suffered significantly. The company's sales volume had dipped considerably during Q1 FY2021. As a result, Nitco has implemented salary reductions of 15-40% across different levels. Now, with the business returning to normalcy and the sales volume almost returning to pre-COVID-19 level on y-o-y basis, Nitco, from October 2020, has reinstated the employees' full salaries.
Shares of NITCO LTD. was last trading in BSE at Rs.26.3 as compared to the previous close of Rs. 25.05. The total number of shares traded during the day was 119862 in over 653 trades.
The stock hit an intraday high of Rs. 26.3 and intraday low of 23.8. The net turnover during the day was Rs. 3081793.