Century Textiles & Industries Q3 PAT tumbles 67% to Rs 12 cr

20 Jan 2022 , 04:00 PM

Consolidated EBITDA (from continuing operations) declined 3.66% to Rs 105 crore in Q3 December 2021 over Rs 109 crore in Q3 December 2021. Century Textiles & Industries witnessed a good operational efficiency and turnover as the market sentiments improved.

On a segmental basis, revenues from Textiles segment grew 20.79% to Rs 275.30 crore in Q3 FY22 as against Rs 227.90 crore in Q3 FY21. Revenues from Pulp & Paper segment soared 49.35% to Rs 730.73 crore in Q3 FY22 as compared to Rs 489.27 crore in Q3 FY21. Revenues from Real Estate segment fell 5.20% to Rs 34.06 crore in Q3 FY22 as compared to Rs 35.93 crore in Q3 FY21.

Commenting on the Q3 FY22 results, JC Laddha, the managing director (MD) of Century Textiles & Industries (CTIL), said, Century Textiles and Industries continues to demonstrate resilience across its diversified businesses on the back of improved market sentiment, efficient business operations and adoption of best industry practices. The Pulp and Paper business saw robust sales, despite the impact on demand due to the new covid variant towards the end of the quarter. Growth in the Textiles business was aided by good demand in domestic as well as international markets. In the Real Estate business, a major milestone was attained as we received all approvals for our flagship project – Birla Niyaara at Century Mills, Worli and have now commenced pre-launch market outreach activities.

For its outlook, in the Pulp and Paper Business, the company said that there is a high probability in spreading of 3rd wave of COVID-19 in Q4 FY22, and has already started impacting order flow. Paper demand is facing slow down as Government has not yet cleared its guidelines on New Syllabus, as a result book publishing segment will continue to remain under pressure. Major tissue consumption centres are operational with restricted guidelines, curtailing tissue demand. Domestic & export demand in Board segment is expected to remain good.

For its real estate business, Century Textiles & Industries said that a strong Q3 FY22 indicates that the market is recovering. However, the 3rd wave of the COVID-19 pandemic could dent business operations in the next quarter as states start imposing restrictions on movement and assembly. Labour shortages at sites may increase due to COVID-19 related disruptions. Business operations will have to be carried out with flexibility, agility and adaptability, demand fundamentals remain robust. The pandemic has reinforced further the idea of self-owned home being the centre point of peoples lives. This along with the Birla Brand credentials will ensure our continued steady performance over the coming quarters.

For the outlook in Textile business, the firm said that, with new normal, the major concern is raw material price inflation & 3rd wave of COVID-19. Stability of raw material prices is expected somewhere in mid-Q4 & accordingly the supply will get streamlined. Due to the current US sentiments towards China, Retailers have started looking at China +1 buying strategy which can be a good scope for Indian manufacturers like us to increase our pie of cake. Stability of raw material prices is most important. Market will have to absorb the new prices but fluctuation in rates & in demand isnt good for the business. We expect stability by Feb in the market to have better start to the next financial year.

Shares of Century Textiles & Industries lost 0.04% to Rs 963 on BSE. Century Textiles & Industries has presence in cotton textiles, pulp & paper and real estate sectors.

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