Century Textiles and Industries Ltd reports results for Q2 FY22

 

Key Highlights

v  Sales witnessed a considerable jump at 67% YoY in Q2.	Ç
v  EBITDA was up by 102% in Q2 as compared to the same quarter last year.	Ç
v  PAT is noteworthy at Rs. 32 Crs in Q2 FY22, a significant reversal from Q2 FY21.	Ç
v  Strong performance by the businesses with higher operating efficiencies and turnaround in the market sentiments.

FINANCIAL SUMMARY – (Continuing Operations)

(Rs. Crores)

	Standalone		Consolidated
Particulars	Q2 ‘22	Q2 ‘21	Q2 ‘22	Q2 ‘21
Net Sales	998	600	998	596
EBITDA	160	85	133	66
PAT	54	5	32	(10)

Commenting on the Q2 FY22 results, JC Laddha Managing Director, Century Textiles and Industries Limited (CTIL) said - “Century Textiles and Industries Limited continued its journey of resilient performance despite the disruptions caused by the pandemic. Manufacturing businesses posted excellent results due to healthier business environment, robust productivity at our manufacturing plants and financial prudence. Pulp & Paper business saw the best ever quarter in terms of production and sales volumes mainly supported by higher volumes from value added products and new products. The Textiles business saw a strong revival supported by robust domestic demand on account of upcoming festive season. The Real Estate business received a strong response to its Kalyan Phase 2 launch.

SEGMENTAL PERFORMANCE

PULP & PAPER BUSINESS

·         Highest throughput achieved with the business reaching at 101% capacity utilization in Q2 FY22.

·         Sales saw a growth of 64% in Q2 FY22 as compared to same quarter last year

·         Marked improvement in the demand for writing & printing paper segment in lieu of opening of offices, judiciary etc. Strong order flows continued for board & tissue segments

REAL ESTATE BUSINESS

·         Robust collections at all projects on the back of strong customer connect and outreach.

·         Launched 2^nd Phase of Birla Vanya, Kalyan, received strong response from customers.

·         The two commercial assets, Birla Aurora and Birla Centurion continue to generate stable rentals. The primary focus is to ensure a safe environment for all the stakeholders at the properties.

TEXTILES BUSINESS

·         Business bounced back with Plant operating at 91% capacity utilization compared to 68% YoY

·         Sales grew by 109% in Q2 FY22 as compared to Q2 FY21

·         Domestic demand has picked up after subdued demand due to pandemic. Expecting major order flows in view of upcoming festive season.

OUTLOOK

PULP AND PAPER BUSINESS

Improved medical infrastructure facilities in the country, has negated the earlier speculation of 3^rd Covid wave hitting the country at the beginning of Q3. Most of the paper consumption points are expected to open completely. Therefore, order flows are expected to remain strong going forward. Considering the present domestic and global economic scenario, Short to Medium term outlook for Indian paper industry appears to be positive. 

REAL ESTATE BUSINESS

Economic activity is expected to further gain momentum led by favourable monetary conditions and improved customer sentiments due to festive season. WFH & e-schooling realities have become the fulcrum of home buying decisions in the post-pandemic world. Customer predisposition towards branded developers with strong credibility, well designed apartments, superior location and reliable post sales services will hold us in good stead as we build up on our growth story over the coming quarters.

TEXTILES BUSINESS

Normalcy is expected from next quarter provided new crop will bring stability to cotton prices. Product Development in various cotton blends using sustainable options of viscose, polyester etc seems to be the new trend and we are working on these product ranges. With new normal, business expected to increase with good demand locally as well as in international market. Overall, it is expected to be a good year for the textile business in India.