Nitco hit an upper circuit of 5% at Rs 26.3 after the company said tile sales volume in November recorded a 21% sequential increase over the month of October 2020.
With this, November 2020 sales volume has reached 111% of the tile volumes in November 2019. The company said it sees the momentum to continue for the next few months.The company said it continues to expand its retail footprint in select geographies. The company has identified five states (Kerala, West Bengal, Bihar, Tamil Nadu, and Uttar Pradesh) where it plans to beef up its presence.
With the onset of the pandemic and the resultant nation-wide lockdown March 2020 onwards, Nitco's business, like many other businesses, had suffered significantly. The company's sales volume had dipped considerably during Q1 FY2021. As a result, Nitco has implemented salary reductions of 15-40% across different levels. Now, with the business returning to normalcy and the sales volume almost returning to pre-COVID-19 level on y-o-y basis, Nitco, from October 2020, has reinstated the employees' full salaries.
Shares of Nitco have jumped nearly 33% in five sessions from its previous closing low of Rs 19.80 on 26 November 2020.
Nitco is a prominent floor and wall solutions company. The company is present in all three surfaces: namely, tiles, marble, and mosaic, with a comprehensive product range in each category.
On a consolidated basis, Nitco posted a net loss of Rs 30.24 crore in Q2 September 2020 as against a net loss of Rs 30.12 crore in Q2 September 2019. Net sales fell nearly 40% year on year to Rs 76.77 crore in Q2 September 2020 over Q2 September 2019.
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