3 Strong growth across key financial parameters Performance Review Q2 FY’08 Vs. Q2 FY’0749%45%26%Net SalesEBITDAPATNet Sales up 45% from Rs 971.2mn to Rs 1,409mn driven by strong growth across key product segment:Ceramic tiles up 24.7% to Rs 355.7mnVitrified tiles up 35.9% to Rs 785.3mnMosaic tiles up 10.3% to Rs 28.7mnMarble up 83.5% to Rs 384.3mnEBITDA up 26% from Rs 171.9mn to Rs 216.5mn, while EBITDA margin dropped from 17.7% to 15.3% due to:Higher level of Institutional sales in the vitrified segment to capture higher market share, and increase in freight for vitrified tiles from China. This resulted in increase in raw material cost as % of net sales increased from 54.7% to 62.6%PAT up 49% from Rs 89.9mn to Rs 134.1mn resulting in increase in Net Profit Margin from 9.26% to 9.52%
4 Driven by growth across product categories VitrifiedMosaic35.9%10.3%Figures in Rs MnCeramicMarble24.7%83.5%
5 With a diversified product mix Q2 FY’07Q2 FY’08Derisked business model through focus on all major categories of flooring
6 Significant new initiatives to drive future growth Increasing capacity to capture growth in the marketIncreasing capacity of ceramic tile plant at Alibaug by sq. mtr. per day, which would be effective from April,2008.The Company has received marble license of 15,895 tons, which accounts for 11% of the total licenses issued. It issetting up state of the art plant for processing imported marble at Silvassa, which will go on stream in the secondquarterExpanding retail reach and new product launches to consolidate market positionImplementing its plan to create unique display spaces “Le studio Nitco” to showcase the products. Already launched 8stores in Mumbai, Nasik, Ahmedabad, Cochin, Coimbatore, Kolkata and Goa.The company has launched six new products both in ceramic and vitrified tiles.Real Estate Venture taking offThe real estate activities of the group have been consolidated into a 100% subsidiary - Nitco Realties Pvt. Ltd post theapproval by the Hon High Court. It is now in the process of implementing 8 residential/commercial projects in Mumbaiand Alibaug with the first residential project at Worli, Mumbai now in the initial stages of construction.Other highlightsBoard of directors have declared 20% dividend for FY ended March 07 subject to the approval of shareholders at the Annual General Body Meeting.
7 Financial Statements – Income Statement In Rs MnParticularsQ2FY’07Q2FY’08% Chg YoYNet sales971.201,408.9745.07%Other Income1.927.34282.8%Total Income973.121,416.3145.54%Total Expenditure801.221,199.7849.74%Purchase of Raw Material653.591,009.9354.52%Increase/decrease in stock in trade(122.27)(128.20)4.86%Power & Fuel58.3554.95-5.83%Staff Cost41.6064.6055.28%Selling, Distribution & Administration expenses106.44132.3424.34%Other Expenditure63.5166.174.18%EBITDA171.90216.5325.96%Depreciation & Amortization24.8926.948.24%EBIT145.09182.2525.61%Finance Charges18.4136.5398.48%EBT126.68145.7215.02%Tax (including deferred)37.6417.14-54.47%FBT1.071.8067.91%PAT89.89134.1249.21%Basic EPS (Rs.)4.045.1627.93%Notes:1. Power & Fuel figures are after netting of power generated through wind mill of Rs 18.93mn and Rs.36.70mn for the quarter ended September 30,2007 and six months ended September respectively. Corresponding quarter in Previous Year - Rs.21.43mn, for the half year ended - Rs.37.03mn & for the year ended March 31, Rs.44.21mn)2. Interest & Other Financial charges are net of Forex gains of Rs.6.82mn and Rs.38.91mn for the quarter ended September 30,2007 and six months ended September respectively. (Corresponding quarter in Previous Year - Forex Gain Rs.2.39mn, for the half year ended - Forex Loss Rs.10.94mn & for the year ended March 31, Forex Gain Rs.27.97mn)3. Out of the issue proceeds of Rs. 1680mn, the Company has utilised Rs mn towards Objects of the issue and pending utilisation, balance funds as at September 30, 2007 have been invested in term/fixed deposits with Banks.
8 Financial Statements – Ratio Analysis Key RatiosQ2FY’07Q2FY’08EBITDA Margin17.7%15.3%Net Margin9.3%9.5%Total Expenditure/ Net Sales82.5%85.2%Consumption of Raw material/ Net Sales54.7%62.6%Staff Cost/Revenues/ Net Sales4.3%4.6%Selling & Distribution expenses/ Net Sales10.9%9.4%
9 Forward Looking Statement About Nitco Tiles LtdNitco Tiles Ltd. (Nitco) is a complete flooring solution provider. The company product category includes ceramic floor tiles, vitrified tiles, paving tiles, mosaic tiles and imported marble. It caters to both institutional and retail clients through its large scale network of 550 direct dealers and over 5,000 retail outlets spread over India. The key institutional clients include Hiranandanis’, Rahejas’, Pantaloon Retail, Godrej Properties, Oberoi Construction, Keystone, Piramals’, Nirmal Lifestyle, Shrusti, Runwal, RNA, several large corporates, banks and financial institutions etc.. For further information please visitForward Looking StatementCertain statements in this document with words or phrases such as “will”, “should”, etc., and similar expressions or variation of these expressions or those concerning our future prospects are forward looking statements. Actual results may differ materially from those suggested by the forward looking statements due to a number of risks or uncertainties associated with the expectations. These risks and uncertainties include, but are not limited to, our ability to successfully implement our strategy and changes in government policies. The company may, from time to time, make additional written and oral forward looking statements, including statements contained in the company’s filings with the stock exchanges and our reports to shareholders. The company does not undertake to update any forward-looking statements that may be made from time to time by or on behalf of the company.
10 Contact Us For any Investor Relations queries please contact: Jogendra SethiNitco Tiles LtdTel. No