Century Textiles & Industries fell 3.19% to Rs 600 after the company announced a dismal Q3 result during market hours today.
On consolidated basis, Century Textiles' net profit tumbled 57.37% to Rs 35.88 crore while net sales declined 9.25% to Rs 853.81 crore in Q3 December 2019 (Q3 FY20) over Q3 December 2018 (Q3 FY19).On a standalone basis, net profit slumped 34% to Rs 57 crore in Q3 FY20 as against Rs 86 crore reported in Q3 FY19. Net sales declined 9.25% year-on-year (YoY) to Rs 854 crore in Q3 FY20.
EBITDA for Q3 FY20 stood at Rs 173 crore as against Rs 206 crore reported in Q3 FY19, registering a decline of 16.02%.
The company maintained a positive outlook for both paper and textile divisions and is hoping to present better revenues and EBITDA levels in the last quarter of the financial year.
"Given the volatile international geo-political situation, the economic sentiment seems to be that of wait and watch. With the external environment being uncertain, the company is focusing on internal strategies to substantially improve operational efficiencies and renewed focus on cost optimisation to secure the margins. The company has set out an action plan to completely wipe out single use plastic and take a big step towards sustainability making its businesses free of all objectionable single use plastic items. The company is taking comprehensive steps to build a sustainable business model by focussing on innovation and new value added products which will help in creating value propositions for all the stakeholders," the company said in a statement.
Commenting on the results JC Laddha MD, Century Textiles and Industries said "While the market has been sluggish our sales have been good and in this quarter we have tapped the e- commerce platform through tie up with Amazon for textiles at US market. Our real estate venture has been progressing well and will soon be launching our third residential project in the coming quarter. The Pulp and Paper division too has been impacted by the global downturn however we are operating at full capacity. We are confident that in the fourth quarter we will see a better all-round performance."
The board has also approved the issue of non-convertible debentures on private placement basis for Rs 400 crore for general corporate purposes including long term working capital/refinancing.
Century Textiles and Industries is a commercial powerhouse with interests in diverse industries. Currently, the business house is a trendsetter in cotton textile and also has a remarkable presence in pulp & paper and real estate sectors.
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