Century Textiles and Industries managed to remain in the black during the year ended March 2002, exclusively through a financial restructuring.
Interest costs during the year declined by Rs 37.33 crore to Rs 155.12 crore. This helped it to post profit before tax (PBT) of Rs 18.59 crore in FY02 compared with Rs 74.23 crore in FY01. The lower PBT is attributed to higher provision for depreciation, which was up Rs 66.99 crore to Rs 140.42 crore.
The financial restructuring and repayment of debts was the major saving factor for the company during FY02. The company repaid the high-cost debt worth Rs 266.99 crore and restructured loans worth Rs 390 crore taken from ICICI and IDBI.
It paid Rs 246 crore to ICICI and refinance loans worth Rs 208 crore. With IDBI, the company repaid Rs 144 crore and refinance loan worth Rs 123 crore.
The overall profitability of the company remained under pressure owing to depressed cement prices and adverse working of textile division following a demand recession.
Sales income was marginally up 1 per cent to Rs 2,197.01 crore. The contribution to sales from textile division was down 11.08 per cent, while that of shipping division declined 17.83 per cent at Rs 55.06 crore.
The rayon, tyrecord and chemicals divisions recorded 18.34 per cent rise in sales at Rs 449.35 crore.
The cement and paper & pulp divisions was a drag on the company. Sales at the cement unit was up 2.13 per cent at Rs 1,082.67 crore, while sales of paper and pulp rose 2.40 per cent at Rs 468.47 crore.
The company faced a demand recession in textiles fabrics business with sales dropping by 20 per cent. Though the lower cotton prices saved company to cut costs, the fall in selling prices particularly in exports market made the matter worse for the company.
The yarn division fetched better prices on account of better quality products. The company did various up-gradation schemes and after new after treatment section, the productivity and quality of yarn improved considerably. Sales at the yarn division was up 20.15 per cent and average realisation per tonne rose 11.83 per cent.
Plant-wise, the cement divisions did well. The company
