It wrote off 30 + cr worth of imported tiles as obslete and damaged(last ar). Sounds extremely dubious or is it fair treatment?
Sales plummeted from 2011 levels.
)- its main clients are instituitional biggies. So the slowdown has struck them badly. In contrast kajaria with a retail focus has better margins and good cash flow.
)- smaller players have eaten into its market. In an interview its MD said " In this slowdown smaller players have no other option but to sell their products through us"
But.atleast here in TN smaller players like anuj , ambani have their local distribution and dealers. Even some up end house builders prefer them!!( on enquiry the dealer said they are as good as branded names!)
)- capital intensive business. Nitco is not the only company suffering losses even after substantial sales.