Century Textile Reports Loss in Q1 FY24
Century Textiles reports net loss of around Rs 7 crore in Q1 FY24
Century Textiles and Industries Ltd, a leading textile manufacturer and exporter in India. It has posted a net loss of Rs 7.06 crore for the first quarter of the financial year 2023-24. This is a sharp decline from the net profit of Rs 36.64 crore. That the company had registered in the same quarter of the previous year.
The company’s net consolidated total income stood at Rs 1,125.38 crore in Q1 FY24. A dip of 5.75 per cent from the Rs 1,194.01 crore it recorded in a similar quarter last year. The company attributed the lower income to the adverse impact. Due to the second wave of the Covid-19 pandemic on its operations and demand.
The company’s textile segment reported a revenue of Rs 610.17 crore in Q1 FY24. This segment includes cotton textiles, yarn, denim, and viscose filament rayon yarn. However, the revenue was down by 8.66 per cent from Rs 667.89 crore in Q1 FY23. Similarly, the segment’s operating profit fell by 37.67 per cent to Rs 35.67 crore. Previously, it was Rs 57.23 crore in the same period.
In contrast, the company’s pulp and paper segment reported a revenue of Rs 515.21 crore in Q1 FY24. This segment includes paper, pulp, caustic soda, sulphuric acid, and salt. Surprisingly, the revenue was up by 0.05 per cent from Rs 514.96 crore in Q1 FY23. Moreover, the segment’s operating profit increased by 11.12 per cent to Rs 83.02 crore. Earlier, it was Rs 74.71 crore in the same period.
Nevertheless, the company’s real estate segment reported a revenue of Rs 0 crore in Q1 FY24. This segment includes Birla Estates and Birla Century. Unfortunately, the revenue was zero compared to Rs 11.16 crore in Q1 FY23. Also, the segment’s operating loss widened to Rs 18.54 crore. Before, it was Rs 14.99 in the same period.
Despite these challenges, the company said it is confident of overcoming the challenges posed by the pandemic and improving its performance in the coming quarters. It also said that it is focused on enhancing its product portfolio, expanding its market reach, and strengthening its customer relationships.
As a result, the company’s shares closed at Rs 875.60 on Wednesday, up by 1.31 per cent from the previous close of Rs 864.30 on the BSE.
In addition to its quarterly results, Century Textiles announced that it had received three significant projects for its real estate business in three metro cities – Pune, Mumbai and Bengaluru. The projects have a combined gross potential of Rs 5,600 crore.
Century Textile acquired a land parcel of 5.76 acres in Pune from Sudarshan Chemical Industries Ltd (SCIL). It costed them 175 crore. The company plans to develop a premium residential project on the land with a saleable area of about 1.5 million sq ft.
Furthermore, the company acquired a land parcel of 0.66 acres in Mumbai from Birla Sun Life Insurance Company Ltd for Rs 100 crore. The company plans to develop a luxury residential project on the land with a saleable area of about 0.2 million sq ft.
Finally, the company acquired a land parcel of 2 acres in Bengaluru from Birla Sun Life Asset Management Company Ltd for Rs 150 crore. The company plans to develop a premium residential project on the land with a saleable area of about 0.4 million sq ft.
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Century Textile said these acquisitions are part of its strategy. It is to grow its real estate business and leverage its brand value and expertise in the sector. The company expects to launch these projects in the next 12-18 months.
