NITCO Limited announces Q3 FY2021 results

Nitco Limited (Nitco), India's most venerable tiles brand, today announced the financial results for the third quarter and nine months ended on December 31, 2020, as approved by its Board of Directors.

Nitco's sales volume during Q3 FY2021 witnessed significant increase as the economic activities improved post pandemic related lockdown was lifted. Nitco's sales volume had dipped considerably during Q1 FY2021 due to the Nation-wide lockdown. During the quarter, Nitco managed a 37% improvement in tile sales volume over Q2. Sales volume in the month of Nov 2020 was the highest so far in this financial year.

Nitco's revenue from sale of products for Q3 FY21 stood at INR 106.09 crore. Operating EBIDTA for tile, marble, mosaic business excluding provisions for current assets and one-off items stood at INR 1.70 crore as compared to negative INR 3.15 crore in Q2 and negative INR 12.35 crore last year Q3. Nitco has been able to prudently manage its cost structure and has managed to curtail operating losses despite the pandemic-led sales de-growth. The company appointed 66 new dealers in Q3.

New Product Launch

Nitco has entered a non-exclusive tie up with an Italian brand of tiles for introducing premium large slabs tiles collection in India. Targeted for premium homes for high net worth individuals and architects specialising in high-end apartments and villas, or premium commercial developments, these large slabs come in size of 1200 X 2500 mm. This collection offers various colour tone along with high technical characteristics which are suitable for contemporary living and acts as a flexible ceramic system that can be adopted with chromatic coherence for various architectural applications. Currently, this collection will be showcased in 3 showrooms Mumbai, Delhi & Bangalore. Nitco will market this Made in Italy range of products through various social media campaigns, virtual dealer launches, and Architect connects programs for creating specification/ exclusive design sourcing.

Mosaico Retail Launch

Nitco has introduced high end marble collection range "Mosaico". To increase the product reach Nitco will tie up with premium dealers in Tier 1 cities to offer Mosaico solutions. The company has launched this collection range in Pune through selected 4 counters and gradually will expand to other tier 1 cities. With this product range, Nitco can enter ultra-premium counters of building materials. This higher margin product will help Nitco to increase premium product sales.

Shares of NITCO LTD. was last trading in BSE at Rs.24.8 as compared to the previous close of Rs. 24. The total number of shares traded during the day was 8433 in over 138 trades.

The stock hit an intraday high of Rs. 24.8 and intraday low of 23.35. The net turnover during the day was Rs. 203659.

Source : Equity Bulls

Keywords