Nitco Tiles Ltd

Investor Update

January 24, 2008

October – December 2007

Index

Financial Review

Product Wise Performance

Operational Highlights

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2.

3.

4. Financial Statements

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Strong growth across key financial parameters

Performance Review Q3 FY’08 Vs. Q3 FY’07

Net Sales up 41% from Rs 1,024.96mn to Rs 1,441.65mn driven by strong volume growth across key product segments:

Vitrified tiles up 42% to Rs 875mn Ceramic tiles up 22% to Rs 370mn Marble up 56% to Rs 330mn Mosaic tiles down 40% to Rs 24mn

EBITDA up 27% from Rs 173.3mn to Rs 220mn, while EBITDA margins dropped from 16.9% to 15.3% due to: Higher level of Institutional sales in the vitrified segment to capture higher market share. These institutional sales have lower margins

as compared to retail sales. Material cost as a percentage of net sales has increased by 8 percentage points on account of product mix and increase in freight

rates for vitrified tiles from China. Vitrified tiles and marble account for 74% of sales in Q3FYO8 against 70% in corresponding quarter in previous year

Personnel Cost increased by 38% from Rs 45.49mn to Rs 62.92mn on account of overall increase in salary levels and higher level of recruitment to cater to the growth plans.

PAT up 43% from Rs 92mn to Rs 132mn resulting in increase in Net Profit Margin from 9% to 9.2% Interest & other financial charges increased from Rs 1.62mn to Rs 22.18mn due to increased borrowings for higher level of operations. However,

tax liability reduced by 29% from Rs 53.92mn to Rs 38.35mn due to lower provision for Deferred Tax. This has led to increase in net profit margin.

Net Sales EBITDA PAT

41% 27% 43%

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Driven by volume growth across product categories

Vitrified

616.7

875.3

Q3FY'07 Q3FY'08

Ceramic

303.8

369.8

Q3FY'07 Q3FY'08

Mosaic40.2

24.3

Q3FY'07 Q3FY'08

Marble

211.3

329.7

Q3FY'07 Q3FY'08

42%40%

22%56%

Figures in Rs Mn

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With a diversified product mix

Product mix

Q3 FY’07 Q3 FY’08

Derisked business model through focus on all major categories of flooring

YTD 2007 YTD 2008

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Significant new initiatives to drive future growth

Retail Foray

LE Studio - 9 company owned display showrooms are operational and another 11 will be operational within next 12 months

LE Studio Express - 45 franchisee showrooms are under implementation and a total of 100 will be operational within 12 months

QIP Issue

During the quarter, the company raised Rs 1,660mn by placement of 6.15mn shares at a price of Rs 270 per share to leading institutional investors including Lehman Brothers, Citigroup, Merrill Lynch, Deutsche Bank and Reliance Mutual Fund for funding its growth plans

Capacity ExpansionThe 10,000 sq. mt. capacity expansion project of the ceramic tile plant in Alibaug, Maharashtra is on schedule for start-up in Q1 2008-09. The state -of-the-art plant for processing imported marble at Silvassa, is expected to go on stream in the Q3 2008-09

Real Estate Update

The company has recently received approval for construction of IT Park at Thane (Maharashtra) with saleable area of 1,75,000 sq. ft. The construction is expected to be completed in the next 12 to 18 months

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Financial Statements – Income Statement

Particulars Q3FY’07 Q3FY’08 % Chg YoY YTD 2007 YTD 2008 % ChangeNet sales 1,024.96 1,441.65 40.65% 2,879.83 4,015.60 39.44%Other Income 1.97 11.09 462.89% 9.01 25.43 182.25%Total Income 1,026.93 1,452.74 41.46% 2,888.84 4,041.03 39.88%Total Expenditure 853.61 1,232.70 44.41% 2,388.75 3,434.11 43.76%Consumption of Raw Material 570.53 911.78 59.81% 1,603.08 2,487.26 55.16%Power & Fuel 74.52 75.65 1.52% 175.78 187.45 6.64%Staff Cost 45.49 62.92 38.30% 128.22 192.20 49.90%Selling, Distribution & Administration expenses 100.31 108.13 7.80% 310.26 376.13 21.23%Other Expenditure 62.75 74.22 18.27% 171.42 191.07 11.46%EBITDA 173.32 220.04 26.95% 500.09 606.93 21.36%

Depreciation & Amortization 25.75 27.49 6.77% 74.32 80.99 8.98%EBIT 147.57 192.55 30.48% 425.77 525.93 23.52%Finance Charges 1.62 22.18 1269.14% 52.97 72.80 37.45%EBT 145.96 170.36 16.71% 372.81 453.12 21.54%Tax 53.92 38.35 -28.88% 121.87 76.06 -37.59%PAT 92.04 132.01 43.42% 250.94 377.06 50.26%

Basic EPS (Rs.) 4.13 *4.70 13.80% 11.27 *13.43 19.17%

In Rs Mn

*Based on Weighted Average Number of Shares

Notes

1) Power & Fuel expenses are after netting of power generated through wind mill of Rs 2.54mn and Rs 39.25mn for the quarter ended 31 December 2007 and nine months ended 31 December 2007 respectively. Corresponding quarter in Previous Year - Rs.2.18mn; for the nine months ended - Rs.39.22mn & for the year ended 31 March 2007 - Rs.44.21mn

2) Out of the issue proceeds of Rs. 1,680mn, the Company has utilised Rs 1,593mn towards objects of the issue and pending utilisation, balance funds as at 31 December2007 have been invested in term/fixed deposits with Banks

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Financial Statements – Ratio Analysis

Key Ratios Q3FY’07 Q3FY’08 YTD 2007 YTD 2008EBITDA Margin 16.9% 15.3% 17.4% 15.1%

Net Margin 9.0% 9.2% 8.7% 9.4%

Total Expenditure/ Net Sales 83.3% 85.5% 82.9% 85.5%

Consumption of Raw material/ Net Sales 55.7% 63.2% 55.7% 61.9%

Staff Cost/Revenues/ Net Sales 4.4% 4.4% 4.5% 4.8%

Selling & Distribution expenses/ Net Sales 9.8% 7.5% 10.8% 9.4%

Other Expenditure/ Net Sales 6.1% 5.1% 6.0% 4.8%

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Shareholding Structure as on 31st December 2007

Promoter & Promoter

Group, 14,370,065 ,

45%

Public , 1,165,769 ,

4%

Other Corporate

Bodies, 3,585,415 ,

11%

NRI/ OCBs, 1,328,124 ,

4%

MF/ Banks, 2,613,653 ,

8%

FII, 9,060,526 ,

28%

No. of shares outstanding: 32.12mn

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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 StatementCertain 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 company’s 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.

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Contact Us

For any Investor Relations queries please contact:

Jogendra SethiNitco Tiles LtdEmail: JogendraSethi@nitcotiles.comTel. No. +91-22-66164555

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