NITCO Limited , a leading player in the tiles and marble industry, has announced its unaudited financial results for the quarter and half-year ended September 30, 2025. The company's performance reflects significant developments in asset management and employee incentives.

Key Financial Highlights

• Total revenue from operations for Q2 stood at Rs. 10,770.07 crore, compared to Rs. 6,601.25 crore in the same quarter last year.
• The company reported a profit before tax of Rs. 94.10 crore for Q2, a substantial improvement from a loss of Rs. 3,460.92 crore in the corresponding quarter of the previous year.

Asset Impairment Reversal

A notable development this quarter was the reversal of an impairment provision on the company's Alibaug factory assets. NITCO received a higher scrap sale offer of Rs. 32.50 crore, compared to the initial estimate of Rs. 16.00 crore. This led to a reversal of the impairment provision of Rs. 16.50 crore, which has been credited to the depreciation for the current quarter.

The company has entered into a binding contract for the disposal of these assets within six months, and accordingly, they have been reclassified as 'Non-current Assets Held for Sale' under Ind AS 105.

Employee Stock Option Plan

The Board of Directors implemented an Employee Stock Option Plan (ESOP) during the quarter. Key details of the ESOP include:

• Grant of 9,88,000 stock options to employees
• Exercise price set at Rs. 25.00 per option
• Options convertible into an equal number of equity shares
• Vesting period: 50% after one year and the remaining 50% after two years from the grant date

The company recognized an ESOP cost of Rs. 6.37 crore for the vesting period from August 2024 to September 2025, based on a fair value of Rs. 113.76 per option as determined by a registered valuer.

Real Estate Developments

NITCO has entered into a Joint Development Agreement (JDA) for the plotted development of its Alibaug land. Under this agreement, the company recognized an income of Rs. 58.42 crore in the June quarter, representing an Interest Free Adjustable Advance (IFAA) towards signing the JDA. As of September 30, 2025, the company has received Rs. 12.78 crore of the IFAA and expects to receive the balance within the current financial year.

Ongoing Challenges

The company continues to face a penalty of Rs. 170.00 crore from the Additional Directorate General of Foreign Trade (ADGFT) for non-fulfillment of export obligations. NITCO has challenged this order in the Bombay High Court, asserting that it is not in accordance with the principles of equity, law, and good conscience.

Conclusion

Despite facing challenges, NITCO Limited's Q2 results demonstrate the company's efforts to optimize its asset base and incentivize its workforce. The reversal of the asset impairment provision and the implementation of the ESOP scheme are steps that may contribute to the company's long-term growth and stability.

NITCO Limited , a prominent player in the Indian tile industry, has announced a development in its equity structure. The company has allotted 56,000 new equity shares following the exercise of Employee Stock Options (ESOPs) under its NITCO-Employee Stock Option Plan 2019.

Key Details of the Allotment

Impact on Share Capital

The allotment has led to an increase in NITCO's issued, subscribed, and paid-up equity share capital. Here's how the numbers stack up:

The company's capital structure also includes 15,00,00,000 preference shares of face value ₹10 each, which remain unchanged.

ESOP Details and Beneficiary

The options exercised were part of a grant made on April 3, 2019. The beneficiary is a former employee who retired from the company in 2020. As per the NITCO Employee Stock Option Plan 2019, retired employees are allowed to exercise their vested options within the permitted exercise period.

Financial Impact

The diluted earnings per share (EPS) following this share issuance stands at 1.94, reflecting the minimal dilutive effect of this allotment on the company's per-share earnings.

Regulatory Compliance

NITCO Limited has ensured compliance with regulatory requirements, including those set by the Securities and Exchange Board of India (SEBI). The company has made necessary disclosures to both the BSE Limited and the National Stock Exchange of India Limited, where its shares are listed.

Conclusion

This allotment under the ESOP scheme demonstrates NITCO's commitment to its employee reward programs, extending benefits to retired staff. While the impact on the overall share capital is relatively small, it reflects the company's efforts to align employee interests with those of the shareholders.