Century Textiles & Industries Ltd's Q2FY19 standalone net profit rises 111.9% yoy to Rs160.1cr

The company’s standalone revenue stood at Rs2,088.9cr, up 14.7% yoy but down 4.5% qoq.

Oct 29, 2018 02:10 IST India Infoline Research Team

Century Textiles & Industries Ltd Q2FY19

Standalone Results Q2FY19: (Rs. in cr)

Q2FY19 YoY (%)
Revenue 2,088.9 14.7
EBITDA 377.2 31.8
EBITDA Margin (%) 18.1 235
Net Profit (adjusted) 160.1 111.9
***EBITDA margin change is bps
Century Textiles & Industries reported healthy set of numbers for Q2FY19. Revenue (including other operating income) grew by 14.7% yoy to Rs2,088.9cr. With the discontinuation of Yarn and Denim business and arrangement with Grasim Industries to manage and operate the company's Viscose Filament Yarn business, EBITDA jumped by 31.8% yoy to Rs377.2cr. EBITDA margin has also expanded by 235bps yoy to 18.1%. EBITDA growth and lower interest outgo led to PAT of Rs160.1cr, against Rs75.5cr in Q2FY18.
  •  Revenue form textile business has declined by 37.8% yoy to Rs238.8cr (discontinuation of aforementioned business and arrangement with Grasim Industries). EBIT margin contracted by 403bps yoy.
  • Cement segment revenue was up by 16.8% yoy for the quarter (ex-excise duty, break-up is not available) with 270bps yoy improvement in EBIT margin.
  • Real estate segment witnessed 30.6% yoy growth in revenue to Rs37cr.
  • For H1FY19, EBITDA/tn stood at Rs582/tn and the capacity utilisation stood at ~71%.
  • Company informed that in the NCLT convened shareholder's meeting on October 24, 2018, 81.4% of the minority shareholders have voted in favour of company's decision to sell its cement assets at an enterprise value of Rs8,621cr.
  • Pulp and Paper business’ segment reported strong revenue growth of 28% yoy, however, the EBIT margin contracted by 191bps yoy.
  • Company has approved the expansion plans for doubling of the tissue paper capacity to 72,000MTPA with a total capex of Rs100cr. The new production line is expected to commence production in Q2FY20E.
  • The real estate segment reported 21.8% yoy growth in revenue.  
  • Interest cost for the company has declined by 24.6% yoy to Rs90cr.
  • Tax rate for the quarter stood at 30.8% against 31.4% in same quarter last year.
  • Company's debt stood at ~Rs4,200cr as at September 30, 2018 and after the demerger of cement division, it will be reduced further by Rs3,000cr.

Technical View:

Century Textiles & Industries Ltd is currently trading at Rs. 808, up by 35.75 points or 4.63% from its previous closing of Rs. 772.25 on the BSE.
The scrip opened at Rs. 775.50 and has touched a high and low of Rs. 820 and Rs. 766.50 respectively. So far 18,13,707 (NSE+BSE) shares were traded on the counter. The stock is currently trading above its 200 DMA.

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