Century Textiles & Industries rallied 3.33% to Rs 841.20 after the company's consolidated net profit (from continuing operations) zoomed 117.84% to Rs 69.97 crore as against Rs 32.12 crore recorded in Q2 FY22.
Net sales jumped 21.3% to Rs 1,210.78 crore in Q2 FY23 from Rs 997.98 crore posted in the same period a year ago.
Consolidated EBITDA stood at Rs 188 crore in quarter ended 30 September 2022, up 42.42% from Rs 132 crore posted in the corresponding quarter previous year.
The company's revenue from Pulp & Paper business surged 37% to Rs 942 crore in Q2 FY23 as compared to Rs 686 crore reported in Q2 FY22. Sales realization increased by 45% year on year in Q2 FY23. EBITDA climbed 69% YoY to Rs 193 crore in quarter ended 30 September 2022. The plant achieved overall capacity utilization of 96%.
For its outlook in the Pulp & Paper segment, the company, said, Writing & Printing paper (WPP) demand is expected to increase on account of the single-use plastic ban despite heavy cost pressure in the domestic market due to imports and price corrections by lower-grade mills. The tissue segment is expected to perform better in Q3, with major tissue consumption centres being fully operational. The board segment market is expected to be subdued due to lower demand and competitive low-priced imports. With the reopening of most paper consumption centres and subsiding high input prices, the short to medium term outlook for the Indian paper industry appears to be positive.
In textiles segment, the turnover has decreased by 14% to Rs 224 crore in Q2 FY23 as compared to Rs 261 crore in Q2 FY22. Capacity utilisation stood at 86% in Q2 FY23. Apparel fabrics demand is stable in the domestic market. Export markets are severely impacted as rising interest rates are weighing heavily on economic activity worldwide, which has impacted the home-textile business.
For its outlook in the textiles business, the company, said, After introducing 'Virasat' and riding on the success of 'Hill & Glade', the focus would now be on developing SMART fabrics i.e., a collection of functional fabrics with special attention to comfort, practicality and durability, and to launch them in domestic as well as international markets. Domestic apparel demand is expected to remain steady, despite volatile raw material prices, uncertain geopolitical environment and high inflation.
In Real Estate business, the company achieved sales (booking value) of Rs 561 crore in Q2 FY23 with significant contribution from the Birla Niyaara (Worli) project, which has achieved cumulative sales of Rs 1,766 crore till Q2 FY23.
Further, the company, on its outlook for the Real Estate segment, stated, The industry outlook remains positive with the festive season in full swing and favourable homebuyer and investment sentiments towards real estate. With a significant part of the workforce returning to offices and active sourcing of new workspaces by IT companies, flex operators and startups, the commercial sector is also seeing strong growth. The demand fundamentals are expected to remain robust on account of India's distinct position as an oasis of stability amidst fears of a global economic slowdown in the near term.
Commenting on the Q2 FY23 results, R K Dalmia, managing director of Century Textiles and Industries (CTIL) said - "Building upon the momentum initiated in the previous quarter, the company performed even better in this quarter, especially due to increased market demand during the festive season, favourable impact of the single-use plastic ban as well as several cost-reduction initiatives implemented across our production facilities. The Pulp and Paper business delivered stellar performance backed by increased demand across all segments with timely price corrections and cost reductions. While the Textiles business is facing challenging times, apparel fabric demand has been stable in the domestic market. The Real Estate business registered robust growth with propped up demand for quality housing on account of the stable job market and steady infrastructure investments."
Century Textiles & Industries has presence in cotton textiles, pulp & paper and real estate sectors.
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