Nitin Fire – Growth in All Segments

Nitin Fire Protection Industries Ltd – reported a strong 4QFY10 performance, with revenues more than doubling yoy (104%) to Rs1,054m, while earnings jumped 179% to Rs155m. Sales and earnings for FY10 grew 28% and 27%, respectively.

All the three business segments contributed to the 104% yoy revenue growth in 4QFY10. The fire-fighting business grew 46% yoy, industrial cylinder (traded) sales grew 154% yoy while CNG cylinder sales grew 141% yoy. We expect the strong growth momentum to continue in the coming year.

Earnings for 4QFY10 rose 179% yoy to Rs155m. Apart from the revenue growth, the greater share of associate company profits (which rose 133% yoy) and the lower tax rate also helped the growth of earnings.

Brokerages have raised FY11 and FY12 revenue estimates 6% and 4%, respectively, to factor in higher growth in the fire-fighting and industrial cylinder businesses. The earnings estimates change only marginally due to assumed margin-contraction.