Shares of Century Textiles and Industries moved higher by 15 per cent to Rs 783.80, also its record high on the BSE in intra-day trade on Wednesday after the company reported a consolidated net profit of Rs 25 crore for the quarter ended June 2021 (Q1FY22), on the back of strong operational performance. The company had posted a consolidated net loss of Rs 36 crore in Q1FY21.
The stock rebound 17 per cent from its intra-day low of Rs 668.85 to surpass its previous high of Rs 736 touched on July 19, 2021. In comparison, the S&P BSE Sensex was down 0.44 per cent or 233 points at 52,346 points around 02:55 pm.
Net sales during the quarter saw a significant growth of 111 per cent year-on-year (YoY) at Rs 832 crore, against Rs 394 crore in the corresponding quarter of the previous fiscal. Ebitda (earnings before interest, taxes, depreciation, and amortization) saw a substantial jump of 289 per cent YoY to Rs 117 crore as compared to the same quarter in FY21.
The manufacturing businesses, in particular, witnessed a strong turnaround on the back of continuous drive towards product innovation, customer centricity and better financial management, the company said.
The pulp & paper business performed well in the quarter due to strong demand from tissue and board segments. The textiles business saw a major turnaround supported by strong demand in the bed linen segment. The real estate business posted a significant jump in collections along with steady leasing income.
On the outlook, the management said the upcoming festive season should introduce a new normal for the textile segment. The business is expected to accelerate between August to December this year, in both the domestic as well as export markets.
Considering the present economic environment and the uncertainty over the third wave, the short to medium-term outlook for the Indian paper industry appears to be volatile. "WPP will face some challenges till the educational institutions, offices etc, reopen. The packaging board segment is likely to see sustained high demand going forward. An increase in tissue per capita consumption is expected due to rising health and hygiene awareness," it said.
As regards the real estate segment, the management said economic activity is expected to gain momentum over the coming quarters, led by favourable monetary conditions, abundant liquidity, and optimism from the vaccine rollout. Changes brought forward by the pandemic in terms of sales, digitisation and predisposition towards branded developers would accelerate the growth of the sector, it said.
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