Century Textiles & Industries' consolidated net profit (from continuing operations) tumbled 44.33% to Rs 6.77 crore in Q3 FY23 from Rs 12.16 crore reported in Q3 FY22.
Net sales was at Rs 1,149.94 crore in Q3 FY23, up 9.5% as against Rs 1,049.95 crore posted in the corresponding quarter last year.
Consolidated profit before tax (from continuing operations) dropped nearly 37% year on year to Rs 21.22 crore in Q3 FY23.
EBITDA stood at Rs 91 crore in the quarter ended 31 December 2022, declining 13.33% from Rs 105 crore reported in Q3 FY22.
Total expenses rose 11.16% YoY to Rs 1,515.45 in Q3 FY23. Cost of materials consumed was at Rs 709.85 crore in Q3 FY23, up 16.7% YoY.
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The company's revenue from Pulp & Paper business jumped 18% to Rs 863 crore in Q3 FY23 as compared to Rs 731 crore registered in Q3 FY22. Sales realization increased by 38% in Q3 FY23 as compared to same quarter of FY22. EBITDA rose 10% YoY to Rs 100 crore in the quarter ended 31 December 2022. The plant achieved overall capacity utilization of 93%.
For its outlook in the Pulp & Paper segment, the company said, Writing & Printing paper (WPP) demand is expected to remain stable with downward price corrections impacting orders and margins. Tissue segment is expected to have stable demand with expected price pressure from low-priced imports. Demand in board segment would remain subdued due to excessive supply of low-priced imports as well as export orders being diverted to domestic market and a likely shift from Virgin grade to recycled grade products. With an estimated low-priced supply pressure in domestic and export markets, the short to medium term outlook for Indian Paper Industry appears to remain neutral.
In textiles segment, the turnover has decreased by 10% to Rs 237 crore in Q3 FY23 as against to Rs 263 crore posted in Q3 FY22. Capacity utilisation in Q3 FY23 was at 88% as compared to 95% in Q3 FY22. In apparel fabrics, demand was at a moderate level and constant whipsaws in input prices led to volatility in sales of garments and fabrics.
For its outlook in the textiles business, the company, stated, Considering the current domestic and global economic scenario, our focus would be on improving our portfolio with unique products offered at economical prices through various intra and intergroup synergies with 'Sustainability' at the core. We plan on setting up the best practices to achieve complete traceability of all the raw materials throughout the supply chain to get aligned with most of the reputable international brands. The apparel fabrics and home linen demand is expected to be stable in domestic market with a slight downward shift in export demand.
In Real Estate business, the company achieved robust sales across all projects in MMR, NCR, and Bengaluru. Birla Niyaara was the largest selling project in the calendar year in MMR clocking over Rs 1,900 crore and Birla Navya Gurugram was close to fully selling out the phase launched in the last quarter. Commercial assets Birla Aurora and Birla Centurion continue to generate stable rentals.
Further, the company, on its outlook for the Real Estate segment, said, The industry outlook remains positive with mortgage rates expected to remain stable despite fears of an impending global economic slowdown. The demand is expected to remain robust as homebuyers continue to exhibit propensity to mitigate execution risk by making premium investments with large and listed real estate players. We expect that our unique positioning as a developer of trust, backed by strong group fundamentals, would enable us to comfortably achieve our targets for the year.
Century Textiles & Industries has presence in cotton textiles, pulp & paper and real estate sectors.
Shares of Century Textiles & Industries rallied 4.02% to Rs 696 on the BSE.
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