Nitco Q3 Release

1
Investor Update
Nitco Tiles Ltd
January March 2008
April 28, 2008
2
Index
Financial Review
1.
Product Wise Performance
2.
Operational Highlights
3.
4.
Financial Statements
3
Strong Quarterly Growth Trend Continues
Performance Review Q4 FY08 Vs. Q4 FY07
40
24
Gross Sales
EBITDA

• Gross Sales up 40 from Rs 1,419.11mn to Rs
  1,983.76mn driven by strong volume growth across
  key product segments
• Vitrified tiles up 10 to Rs 908.5mn
• Ceramic tiles up 24 to Rs 389.7mn
• Marble up 139 to Rs 398.5mn
• Cement sales of Rs 263.2mn
• EBITDA up 24 from Rs 208.91mn to Rs 258.82mn,
  while EBITDA margins dropped from 16.7 to 14.7
  due to
• Lower margin in cement business of 5.35 as
  compared to tiles business of 16.14
• PAT up 3 from Rs 129.27mn to Rs 133.15mn
• In Q4 FY08, interest and other financial charges
  increased by Rs. 39.08mn which includes forex
  loss of Rs. 37.87mn as against forex gain of
  Rs.17.06mn in Q4 FY07. The loss was as a result
  of significant exposure in USD due to outsourcing
  of Vitrified Tiles from China. The exchange rate
  of USD to INR was Rs. 40.06 at the end of Q4FY08
  as compared to 39.42 as at the end of Q3FY08
  resulting in foreign exchange loss for Q4FY08.

4
Resulting in a Robust Growth for the Fiscal Year
Performance Review FY08 Vs. FY07
34
38
22
Gross Sales
PAT
EBITDA

• Gross Sales up 38 from Rs 4,704.33mn to Rs
  6,510.03mn driven by strong volume growth across
  key product segments
• Vitrified tiles up 32 to Rs 3,331.6mn
• Ceramic tiles up 25 to Rs 1,463.3mn
• Marble up 68 to Rs 1,281.9mn
• Cement sales of Rs 297.2mn

• EBITDA up 22 from Rs 709.00mn to Rs 865.74mn,
  while EBITDA margins dropped from 17.16 to
  14.97 due to
• Lower margin in cement business of 5.22 as
  compared to tiles business of 15.47
• Increase in personnel cost by 43.37 from Rs
  182.87mn in FY07 to Rs. 262.19mn in FY08 on
  account of higher level of recruitments to cater
  to the growth plans of the company and also
  overall increase in salary levels
• Increase in input cost.
• PAT up 34 from Rs 380.21mn to Rs 510.22mn, while
  PAT margins dropped from 9.2 to 8.8
• Interest and financial charges increased by 73
  from Rs 80.49mn in FY07 to Rs 139.41mn in
  FY08 due to lower exchange gain and increased
  borrowings for higher level of operations

5
With a diversified product mix
Product mix
Q4 FY07
Q4 FY08
46
58
4
13
4
12
1
20
20
22
FY 2007
FY 2008
5
2
54
51
3
2
16
20
22
25
Vitrified
Ceramic
Marble
Mosaic
Others
Cement
Derisked business model through focus on all
major categories of flooring
6
Strong Growth Across Key Segments
Vitrified Tiles
32

• Gross Sales from vitrified tiles up 32 from Rs
  2528.82mn to Rs 3331.63mn driven by volume growth
  of 29 from 5.19mn sq mtrs in FY07 to 6.71mn sq
  mtrs in FY08
• Realisation increased by 2 from Rs 487 per sq mt
  in FY07 to Rs 496 per sq mt in FY08
• Launched various new products during the year
  including Orient White, Java, Taiga, Florence,
  Viva, Moilano and Murano

Ceramic Tiles
25

• Gross Sales from ceramic tiles up 25 from Rs
  1,171.74mn to Rs 1,463.27mn driven by volume
  growth of 14 from 4.02mn sq mtrs in FY07 to
  4.58mn sq mtrs in FY08 and realisation growth of
  10 from Rs 292 per sq mt in FY07 to Rs 320 per
  sq mt in FY08 due to focus on premium segment
• Launched various new products including
  Metallica, Innova Series, Vintage Series, Estonia
  Series, Breton Stone series, Timberland series,
  Matrix Series, Country Series and Ethinica Series
  

7
Strong Growth Across Key Segments
Marble
68

• Gross Sales from marble up 68 from Rs 763.08mn
  to Rs 1,281.85mn, driven by volume growth of 69
  from 3.34mn sq ft in FY07 to 5.64mn sq ft in
  FY08
• Realisation marginally dropped by 1 from Rs 229
  per sq ft in FY07 to Rs 227 per sq ft in FY08
  due to product mix
• Total license quota increased by 24 from 12,816
  MT to 15,895 MT

Cement

• To benefit from already strong marketing and
  distribution network in the tiles business, the
  company successfully forayed into cement business
  of sourcing it from overseas market
• Gross Sales from cement of Rs 297.17mn in FY08

8
Steps driving future growth

• Retail Foray to drive higher margin
• LE Studio LE Studios in 12 major cities
• LE Studio Express 43 franchisee studios are
  under implementation in tier 1and tier 2 cities
  across the country
• Real Estate Development to unlock the value of
  land assets
• Construction has commenced on Thane IT Park I
  II (Biz Park) expected to be completed in next 12
  months
• Construction of a premium residential building at
  Worli (Mumbai) has commenced.
• Premium Ceramic Capacity expansion in full swing
• The 10,000 sq. mt. capacity expansion project of
  the ceramic tile plant in Alibaug, Maharashtra is
  on schedule for start-up by the end of Q1
  2008-09.
• The state -of-the-art plant for processing
  imported marble at Silvassa, is expected to go on
  stream by end of Q3 2008-09
• Anti Dumping Duty

9
Financial Statements Income Statement
In Rs Mn

• Based on Weighted Average Number of Shares
• Notes
• Power Fuel figures are after netting of power
  generated through wind mill of Rs 5.52mn and
  Rs.44.76mn for the quarter ended 31 March 2008
  and year ended 31 March 2008 respectively
  (Corresponding quarter in Previous Year -
  Rs.4.99mn for the year ended 31 March 2007 -
  Rs.44.21mn

10
Financial Statements Ratio Analysis
11
Product-wise Volume and realisation
12
Shareholding Structure as on 31st March 2008
No. of shares outstanding 32.12mn
13
About Nitco Tiles Ltd Nitco 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 visit
www.nitcotiles.com Forward Looking
Statement Certain 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 companys
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.
14
Contact Us
For any Investor Relations queries please
contact
Jogendra Sethi Nitco Tiles Ltd Email
jogendrasethi_at_nitcotiles.com Tel. No.
91-22-66164555