Century Textiles skids on dismal Q1 performance

Century Textiles & Industries fell 3.21% to Rs 301.50 after the company reported consolidated net loss of Rs 36 crore in Q1 June 2020 compared with net profit of Rs 69 crore in Q1 June 2019.

On a consolidated basis, net sales slumped 54% to Rs 393.86 crore in Q1 June 2020 over Q1 June 2019. Pre-tax loss stood at Rs 48.43 crore in Q1 June 2020 as against pre-tax profit of Rs 114.59 crore in Q1 June 2019. EBITDA tanked 84.29% to Rs 30 crore in Q1 June 2020 as against Rs 191 crore in Q4 March 2020. The Q1 earnings was announced during market hours today, 14 July 2020.

The pandemic-induced nationwide lockdown due to COVID-19 outbreak and the subsequent staggered unlocking of economic activity has severely impacted business of Century Textiles & Industries in the first quarter of the year. However, the company expects to see clear signs of revival from the second half of this financial year across businesses. All businesses have taken decisive steps to re-calibrate to the new normal, it said.

The company's pulp & paper division reported a capacity utilization of 57% in Q1 June 2020. Demand was low in all the three segments of paper, tissue and boards, although some relief came in the form of demand for tissues in retail. There was also demand for Board segment from the pharma and FMCG industry.

The textiles business achieved capacity utilization of 50%, mainly due to fulfillment of US export orders.

Commenting on the Q1 results, JC laddha, the managing director (MD) of Century Textiles & Industries stated: "This was a challenging quarter and while we recoup from the impact of the pandemic, our focus remains on creating value for our stakeholders. We are focussing on digitalisation and customer connect during these trying times. We are also capitalising on the opportunities the pandemic has opened up for our businesses. We have seen high demand for our health-based product line of Masks at Birla Century and the board segment in Pulp and Paper business. Real Estate has also seen a spike in enquiries and encouraging sales during this difficult period which is a testimony to the power of the brand."

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 the Pulp & Paper and real estate sectors.

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