Century Textiles hits fresh 52-week high on fund raising plan via NCDs

The company said its board will meet on Tuesday, January 28, 2020 to consider and approve issue of non-convertible debentures on private placement basis for an amount up to Rs 400 crore.

Shares of Century Textiles & Industries hit a fresh 52-week high of Rs 610, up 4 per cent on the BSE on Friday after the company announced fund raising plan of up to Rs 400 crore through non-convertible debentures (NCDs).

The BK Birla Group company's stock was trading higher for the sixth straight day. In the past week, it has rallied 15 per cent, as compared to 1 per cent decline in the S&P BSE Sensex.

In an exchange filing on Thursday, Century Textiles said its board will meet on Tuesday, January 28, 2020 to consider and approve issue of non-convertible debentures on private placement basis for an amount up to Rs 400 crore. The fund raising is for the general corporate purposes including long term working capital and refinancing, it added.

The board will also consider unaudited financial results of the company for the third quarter ended December, 2019 (Q3FY20) at the said meeting.

In the July-September quarter (Q2FY20), Century Textiles had reported 38 per cent year-on-year (YoY) declined in standalone profit before interest depreciation and tax (PBIDT) at Rs 173 crore, due to 12.7 per cent YoY dropped in net sales at Rs 851 crore. Net profit was up 29 per cent YoY at Rs 187 crore on account of lower tax provision.

However, the management is confident of sustaining and improving its performance in the second half (October- March) of the year on the back of revenue enhancement measures and a continued focus on operational efficiencies and cost control. The scenario is improving across the sectors of interest - paper, real estate, and textiles.

The outlook for both the paper and textile sectors is positive and the management expects to reverse this trend in the second half of the financial year. The company's recent residential launches have received very encouraging response from customers despite subdued market conditions, it added.

Thus far in the month of January, Century Textiles has outperformed the market by surging 28 per cent against 1 per cent rise in the Sensex during the same period.