Nitco's Q4 revenue increases 49% to Rs118cr; Stock ends at 10% upper circuit

Nitco's revenue from sale of products for Q4 FY21 stood at Rs118cr growing 49% over Q4 FY20.

Jun 11, 2021 04:06 IST India Infoline News Service

Nitco Limited, India's most venerable tiles brand, on Friday has announced the financial results for the fourth quarter and year ended on 31st March, 2021, as approved by its Board of Directors.

Nitco's sales volume during Q4 FY2021 witnessed significant increase as the economic activities improved post pandemic related lockdown was lifted. Nitco's sales volume had dipped considerably during Q1 FY 2020-21 due to the nation-wide lockdown.

During Q4, Nitco managed 11% improvement in tile sales volume over Q3. Sales volume in the month of March 2021 was the highest in this financial year. H2 tile sales volume more than doubled H1 volumes.

Nitco's revenue from sale of products for Q4 FY21 stood at Rs118crore growing 49% over Q4 FY20. Operating EBIDTA in Q4 for tile, marble, mosaic business (excluding provisions for current assets and one-off items) was Rs1.5crore as compared negative Rs9.4crore during Q4 of last year. The reported EBIDTA for the quarter is negative mainly due to provisioncreated against current assets amounting to Rs15.3cr.

Nitco has been able to achieve consistent positive operating EBIDTA since September, 2020. Cumulatively, period from September to March saw operating EBIDTA at 1.4% of sales with February month recording highest operating EBIDTA of 2.5%. Nitco has been able to prudently manage its cost structure and bring in operating efficiencies that enabled to curtail operating losses despite the pandemic-led sales de-growth. These measures, along with our focus on driving retail expansion, will enable the company to achieve consistent positive operating EBIDTA going forward.

Domestic Business

Despite the pandemic situation, Nitco managed to add 214 new dealers in the financial year 2020-21. Along with this, 27 new franchise showrooms were opened with an increase in retail footprint by 35,064 sq. ft. Nitco launched Mosaic in Retail segments in Pune, Mumbai and Goa

Export Business

Nitco's export business continued to rise during the financial year. In F.Y. 2020-21 there has been a tremendous growth in export on YOY basis where major contributors are USA and Africa continent. Nitco looks forward to further enhance its global presence and boost exports.

Nitco ended at Rs33.15 apiece up by Rs3 or 9.95% on the BSE.

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