Century Textiles and Industries on Monday, April 24, 2023, reported a 68.8 percent year-on-year (YoY) rise in the consolidated profit at Rs 145.27 crore for the fourth quarter ended March 31, 2023 (Q4FY23). It had posted a profit of Rs 86.07 crore in the corresponding quarter of the previous financial year (Q4FY22).
The textile and paper manufacturing and export company has reported a revenue from operations of Rs 1,208.54 crore in the reported quarter against Rs 1,210.72 crore posted last year.
Century Textiles’ EBITDA (earnings before interest, taxes, depreciation, and amortisation) dropped by 3.4 percent at Rs 121 crore against Rs 125.36 crore posted last year. The company’s margin also declined to 10 percent in Q4FY23 against 10.4 percent in Q4FY22.
In addition, the Board of Directors of the company has recommended a dividend of Rs 5 per equity share for the year ended March 31, 2023.
Segmental Performance:
Real Estate Business: In real estate business the company has achieved sales (booking value) of Rs 806 crore in Q4FY23.
Textiles Business: The Company’s turnover of the textiles business declined by 6 percent to Rs 222 crore in Q4FY23 against Rs 237 crore posted in Q3FY23. Capacity utilisation in Q4 FY23 was 89 percent as compared to 97 percent in Q4 FY22.
Pulp & Paper Business: The Company’s sales in the segment grew by 5 percent to Rs 910 crore in Q4FY23 against Rs 863 crore posted in Q3FY23.
Outlook:
Pulp & Paper Business: The company expects that the demand for writing and printing paper will remain low due to seasonal impact of the closure of the education hub in summer. The Tissue segment is expected to have stable demand with a slight seasonal impact in early Q1FY24.
Demand in the board segment would remain stable with positive market sentiments in Q1FY24. Cost pressure is expected to persist in the domestic market due to low-priced imports and excess supply from domestic mills. The short to medium-term outlook for the paper industry appears neutral.
Real Estate Business: Century Textiles says that the residential real estate industry has almost doubled over the last 3 years and demand fundamentals are expected to remain robust in FY24. It says the domestic consumption is expected to remain strong as mortgage rates are expected to remain stable at current levels.
The share and size of corporate and listed players continues to increase. Our unique positioning with an established brand, robust processes, experienced leadership team and superior delivery capability would allow us to rapidly scale and grow in FY24. Overall industry outlook remains positive.
Textiles Business: The company expects the macroeconomic headwinds to subside in the second half of FY24. Macroeconomic headwinds are likely to subside due to the upcoming elections in two of the largest democracies in the world-the US and India.
It expects the overall market sentiment to improve. Century Textiles is likely to perform better in FY24 with its steadfast focus on developing systems and processes to improve traceability and transparency, as well as adopting internationally accredited certifications that provide a competitive edge in global markets.
Shares of Century Textiles and Industries settled at Rs 674 per share, up 0.68 percent, today, 2023.
First Published: Apr 24, 2023 9:00 PM IST
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