Century Textiles log net loss of Rs36cr in Q1; Covid-19 impacts sales across segments

For the financial year FY20, the company's net profit and net sales stood at Rs468cr and Rs3,332cr respectively.

Jul 15, 2020 12:07 IST India Infoline News Service

The Aditya Birla Group-backed Century Textiles Industries has logged a consolidated net loss of Rs36cr in the quarter ending June 2020 (Q1FY21) period, compared to a net profit of Rs69cr recorded in the corresponding period of the previous year. Consolidated net sales in Q1, was at Rs394cr as against Rs856cr a year ago same period. Meanwhile, EBITDA declined to Rs30cr from Rs191cr of Q1FY20.

Talking about Q1 result, JC Laddha MD, Century Textiles and Industries Limited said: "This was a challenging quarter and while we recoup from the impact of the pandemic, our focus remains on creating value for our stakeholders".

Here's how segment-wise performance stood in this quarter.

Pulp & Paper Business:

In the quarter, this business' sales volumes were low at 54,725 MT against a production figure of 63,495 MT. The capacity utilization for the quarter was 57.1%.

In the audit report, the company stated that demand was low in all the three segments of paper, tissue and boards, although some relief came in the form of demand for tissues in retail. There was also demand Board segment from the pharma and FMCG industry.

Real Estate business:

Century Textiles said, "The nationwide lockdown in the first quarter of FY21 severely impacted the real estate sector in general with the unavailability of migrant workforce, liquidity crisis and slowdown in absorption."

It added that the digitalisation of the entire sales process and focus on expanding Channel Partner base using Digital means was the key focus in this quarter.

Textile Business:

According to the audit report, capacity utilization of 50% was achieved which was mainly due to the fulfilment of US export orders. The unused capacity has been partially utilized for R&D work and is ready for utilisation once the market stabilizes.

However, the flow of domestic orders was low on account of the staggering easing of lockdown restrictions across the country.

Laddha adds, " We are also capitalising on the opportunities the pandemic has opened up for our businesses. We have seen high demand for our health-based product line of Masks at Birla Century and the board segment in Pulp and Paper business. Real Estate has also seen a spike in enquiries and encouraging sales during this difficult period which is a testimony to the power of the brand."

For the financial year FY20, the company's net profit and net sales stood at Rs468cr and Rs3,332cr respectively.

At around 12.26 pm, the company's stock was performing at Rs300.45 per piece down by 0.74% on Sensex. The stock has clocked an intraday high and low of Rs303.80 per piece and Rs296.10 per piece respectively. 

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