NITCO Limited announces Ql FY2021-22 results

Nitco Limited (Nitco), India's most venerable tiles brand, today announced the financial results for the first quarter ended on June 30, 2021, as approved by its Board of Directors.

Nitco's sales volume during Ql FY 2021-22 was adversely impacted due to the second covid pandemic wave. However, despite the adverse scenario, Nitco was able to triple its sales in Q1 as compared to Q1 FY21. Operating EBIDTA for tile, marble, mosaic business excluding provisions for current assets and one-off items stood at negative 4.6 cr. The operating EBIDTA is negative mainly due to low sales because of the lockdown in different states. During the first quarter, the company was able to reduce the operating losses from INR 11 cr last year to negative 4.6 cr in the current year. The cost optimization measures taken by the company in FY 21, along with the focus to drive retail expansion, will enable Nitco to achieve consistent positive operating EBIDTA going forward once the lockdown situation eases across the country.

Product Launch

Nitco recreates its magic with earthen tones like cottos, olive shades along with regular Beiges & Greys. Natural variation of Nitco's famous Cotto colours in 300X600 makes it unique as well as a good match for floor tiles in same colour tone. Glossy Olive tones in same size will change the looks of the kitchen in no time. In 300X450, the emphasis is on wooden look tiles which are in trend as well as grey tones which are favourites in projects. Nitco launched 10 concepts in 300X450 size & 12 concepts in 300X600 size wall tiles as refreshment of existing portfolio in June 2021. These popular sizes contribute to 70% of wall tile sales in India. As a part of Annual refresh, these concepts have garnered good response from the market. Displays of the new products are currently being put up at the stores across the country.

New Partners

In its ever-growing family, Nitco added dealers in Gurgaon and Allahabad. The company is focussed on driving substantial and sustainable growth through product and retail channel expansion. It will continue its journey towards increasing its retail footprint across the length and breadth of India by appointing dealerships and franchise_e stores to provide world class product s to the Indian consumer.

Nitco's quest to expand its presence through various retail formats, best suited to meet the regional markets' requirements continues. It aims to focus on improving the in-house share through several support activities such as loyalty programs, annual tie ups etc. Opening up showrooms in st ates across India shall further strengthen its presence in such regions.

Regional Dashboards

A Region-wise Sales Dashboard has been developed in-house. This tool enables managers to track sales at a granular level against targets, visualize category & SKU trends, monitor margins and track on-time collections. Aided by this Dashboard, the sales team can implement their sales plan for the quarter and take early corrective actions, if any.

Shares of Nitco Ltd. was last trading in BSE at Rs. 22.3 as compared to the previous close of Rs. 23.45. The total number of shares traded during the day was 8171 in over 191 trades.

The stock hit an intraday high of Rs. 23.4 and intraday low of 22.3. The net turnover during the day was Rs. 185059.

Source : Equity Bulls

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