NITCO Limited announces Q2 FY2021 results

Nitco Limited (Nitco), India's most venerable tiles brand, today announced the financial results for the second quarter and six months ended September 30, 2020, as approved by its Board of Directors.

During Q2 FY2021, Nitco witnessed significant increase in sales volume. Nitco's sa les volume had dipped considerably during Ql FY2021 due to the Nation-wide lockdown. From July 2020 onwards, sales volume have picked up significantly and Nitco managed a 3-fold improvement in tile sales volume during the second quarter as compared to Ql. Sales volume in the month of September 2020 was the highest in this financial year.

Nitco's revenue from sale of products for Q2 FY21 stood at INR 76.3 crore. Operating EBIDTA (excluding provisions) stood at negative INR 4.2 crore as compared to negative INR 12 crore in Ql and negative INR 12.6 crore last year Q2. Nitco has been able to prudently manage its cost structure and has managed to curtail operating losses despite the pandemic-led sales de-growth.

During the quarter, the company appointed 67 new dealers. Nitco's collection from domestic business improved significantly during the quarter leading to improved cash inflow. Hl FY21 net cash flow from operations stood at INR 4.5 crore, mainly due to efficient working capital management.

Tile sales volume in October recorded a 6% sequential increase over the month of September. With this increase, October 2020 sales volume has reached almost 90% of the tile volumes in October'19.

Some of the prestigious international projects undertaken by Nitco during Hl FY21 included:

Supply order to one of the USA's largest retail chain

NITCO during Hl FY21, became India's first and the only tile brand to become a preferred tile brand supplier for one of the large counter retail entity in US. The company secured a large export business order on the strength of its design and quality, resulting into an entry across over 1000 stores in US. The US retailer is a large-counter retail enterprise, special ising in sales of hardware, home improvement and seasonal interior decoration products catering mainly to the home improvement professionals, construction and Do-It-Yourself (DIY) concept clients. It operates retail chain stores across US and Canada and is one amongst the top five in the Home improvement Retail industry in US and the world. The venture has successfully commenced with Store Sales from Sept 2020.

Rooppur Nuclear Power Plant Project, Bangladesh

Rooppur nuclear power project is a 2.4GW pressurized water reactor (PWR) facility under construction on the eastern side of the Ganges in the Pabna district of Bangladesh. The project is the country's first nuclear power plant with the first of two units are expected to go into operation in 2023. NITCO was selected due to it high quality surpassing the local manufacturers and gaining approval from the Russian project team.

Gautam Buddha International Airport, Nepal

After rigorous evaluation among all the major brands, Nitco, for is unique design capabilities, was chosen as the sole supplier for Gautam Buddha International Airport, Nepal. It is the 2nd International Airport of Nepal having the planned runway of 3,000-meter length and 16 international parking bays.

Royal Oman Police Academy, Oman

Royal Oman Police (ROP) Academy is the large Institute provides basic training for police personnel, as well as diploma courses in police sciences for university graduates or those with equivalent qualifications. It also trains candidates for senior positions in the ROP. The unit consists of a security station, offices, classrooms, parade and training ground, football and other sports grounds, indoor sports and bodybuilding facilities, swimming pool, clinic, residences. NITCO was awarded to supply tile because of its high quality standards. The product has to go through different requirement such as third party testing and factory visits.

Shares of NITCO LTD. was last trading in BSE at Rs.17 as compared to the previous close of Rs. 17.15. The total number of shares traded during the day was 12931 in over 127 trades.

The stock hit an intraday high of Rs. 17.7 and intraday low of 16.9. The net turnover during the day was Rs. 222575.

Source : Equity Bulls

Keywords