Nitin Fire targets 30-40% sales growth in FY13

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Nitin Fire targets 30-40% sales growth in FY13

The company is optimistic about the its future growth and aims to achieve sales growth of almost 50% year on year or on quarter on quarter basis for FY12.

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Excerpts from Markets Midday on CNBC-TV18 Watch the full show » ALSO READ News and Notices about Nitin Fire Prot See interviews with Nitin Fire Prot Management See what other Experts & Brokerages are saying about Nitin Fire Prot See previous Results of Nitin Fire Prot

Nitin Fire Protection Industries posted tad disappointing numbers in the third quarter of FY12. Its net sales declined 5% to Rs 103.5 crore as against Rs 109.1 crore, year-on-year (YoY). Its profit slipped 40% to Rs 11.70 crore against Rs 19.64 crore reported a year ago. 

Speaking to CNBC-TV18 about the quarterly performance of the company, Rahul Shah, executive director, Nitin Fire said: "We are into the business of contract. Some contracts would have started prior to that quarter and some would have been completing by end of that quarter. So, there has been no de-growth in the sales actually."

The company is optimistic about the its future growth and aims to achieve sales growth of almost 50% year on year or on quarter on quarter basis for FY12.

It sees rise in demand for fire protection and eyes 30%-40% sales growth in FY13.

Below is the edited transcript of Shah's interview with CNBC-TV18. Also watch the accompanying video.

Q: The numbers were a tad disappointing with both sales as well as profit coming down year on year and down quarter on quarter is this something that we should expect in the fourth quarter especially in terms of sales- while one can understand that the bottom-line impacted by the forex loss the downtrend in sales does that continue in fourth quarter, what led to it?

A: We are into the business of contract, because of the nature of the business every contract or every quarter would be different. Some contracts would have started prior to that quarter and some would have been completing by end of that quarter. There has been no de-growth in the sales actually.

In terms of profitability last quarter of last year the same quarter we had sale of an asset, which had contributed to other income. That is why the profitability has gone down. On an overall basis the profit has gone up substantially.

Q: In this quarter there has been a forex loss of about Rs 2 crore could you tell us what the foreign currency loan and exposure is and any kind of plans to repay that?

A: As of now after the dollar exchange coming down this has been some positive impact on the balance sheet. As of December 31, it was quite high and that is why this impact was there. Because we have sufficient amount of exports also, we are equally covered at both the levels.

Q: What is the annual sales and earnings that we can expect for FY12 and more importantly for FY13?

A: The nature of our business is contractual, we are looking at a growth of almost 50% year on year or on quarter on quarter basis growth in sales. At the end of the year balance figures should look something as per the last quarter itself, which would be easily achievable.

But next year sales should look at 30%-40% growth. With the amount of turn around happening in the fire protection space after the Kolkata incident, there has been a huge demand coming up from the government sector in terms of revamping their old existing facilities.