Nitin Fire Protection Industries Limited (NFPIL), an established player in Fire Protection, Safety and Security Solutions Business as well as Cylinders & Re-fuelling Systems, has reported a 94.34% rise in consolidated net profit at Rs. 19.41 crores for the financial year ended March 31, 2008 compared to Rs 9.99crores in the corresponding previous year. Net sales grew by 31.71% to Rs.132.42 crores compared to Rs.100.54 crores in the corresponding previous year. During the year, the Company due to cost reduction measures witnessed significant improvement in margins with net profit margin rising from 9.93% to 14.65%. The consolidated earnings per share as at March 31, 2008 stood at Rs.16.72.

Q4FY08 Performance
During the quarter ended March 31, 2008 the Company reported a 174.90% rise in net profit at Rs. 4.07 cr. compared to Rs. 1.48 cr in the corresponding period of the previous year.

Other developments

The Company recently bagged an order of Rs. 4 cr for IP Based Digital Video Management Systems along with intelligent Building Management Systems for Vodafone House, Ahmedabad. This order has been bagged jointly with a subsidiary company. Further, Nitin Venture FZE, UAE a subsidiary of the Company acquired 40% stake in a Dubai based fire protection company viz. New Age Company, LLC.

The Company also achieved ISO 11439:2000 (E) for CNG Cylinders to conform to technical specifications as per international standards. This international certification indicates that the Company meets the requirements for serially produced high pressure compressed natural gas cylinders for automotive vehicles in which the cylinders are to be fixed. This certification will enable NFPIL to enter the export markets of Iran, Pakistan, Malaysia, Thailand and other CIS Countries.

BUSINESS OUTLOOK

CNG Cylinders Industry: CNG is gaining acceptability the world over because it is 60-70% cheaper than other fuels like gasoline and diesel. The global demand supply gap for CNG Cylinders is expected to widen as different countries make CNG their fuel of the future. According to IANGV (International Association for Natural Gas Vehicles), there will be 65 mn vehicles running on natural gas by the year 2020. This will lead to a surge in demand for CNG Cylinders.

Fire Protection, Safety & Security Industry: Fire safety and security industry in India is divided into two segments, organized and unorganized each garnering 50% of the market. With India’s GDP growth rate more than 8% the country’s demand for the fire protection, safety & security equipments and services has been increasing constantly, keeping pace with the overall growth of the country. This sector has grown by 20-25% Y-o-Y and will continue to do so in the years to come. The buoyancy in the real estate sector and general economic conditions influence the demand for fire protection and security solutions business. The overall size of the industry in India is estimated to be worth more than Rs 300 crore in the organized sector. Some of the business verticals which the Company caters to showing constant growth, are IT, ITES, BPO’s and Banking Sectors.

Management Quotes

Commenting on Nitin Fire’s performance, Mr. Nitin Shah, Chairman and Managing Director said, “Our recent diversification into high-pressure seamless cylinder business is set to benefit from the huge unexploited opportunity. Further, a subsidiary of the Company’s unexecuted order book for CNG cylinders is Rs 120 crore (executable over 9 months) and is expected to post robust revenue growth in the coming fiscal year.”

Tags: calls, daytrading, free calls, intraday, tips

Similar Posts:

• Zicom posts net profit up by 67% at Rs 3.73cr
• Nitin Fire Protection an outperformer: Karvy
• Hikal net sales increase by 54%; PAT up by 64%
• Everest Kanto Q3FY08 net profit at Rs 29.42cr up 44%
• Tata Tea cons income at Rs 1135cr, up by 12%