Century Textiles and Industries reported a net profit of ₹7.8 crore in the June quarter compared to a loss a year ago, while revenue from operations rose over 28 per cent to ₹1,140 crore.
The company said the quarter was hit by rising input costs and the global supply chain crisis, which caused its revenue to fall 26 per cent sequentially. The profit from continuing operations, at ₹28 crore, was down both on year and sequentially.
The bulk of the company’s revenue — 68 per cent — comes from the pulp and paper business, while real estate accounts for 29 per cent.
The real estate operations, carried out under its subsidiary Birla Estates, is becoming a significant business for the company. In the June quarter this segment reported revenue of ₹338 crore, up nearly nine times from year ago, though it was nearly half from the March quarter.
The EBITDA breakup showed that of the total ₹125 crore, the pulp and paper segment contributed ₹65 crore while the real estate division was ₹43 crore.
The company plans to launch projects with a total revenue potential of ₹12,000 crore in the current fiscal year. Some of the projects will be spillovers from last year since approval was not received on time.
It currently has projects in Mumbai, the National Capital Region, Pune, and Bengaluru, with a gross development value of ₹53,000 crore.
In the June quarter it acquired two land parcels in Gurugram and Pine with a total revenue potential of ₹7,800 crore.
In the pulp and paper business, production and sales volumes increased by 7 per cent year over year and 12 per cent year over year. Sales volumes were down sequentially due to general elections impacting government tender orders.
It said the quarter’s EBITDA was 55 per cent lower, predominantly due to lower realizations.
Seasonal factors are expected to moderately revive writing and Printing paper demand in the second quarter of the current fiscal year, the company.
Order flow in the tissue segment is forecasted to be slightly lower in the initial months due to the lean season; however, demand is expected to pick up towards the end of the quarter.
With the upcoming festival season, as well as the FMCG and pharma segment picking up, demand is expected to improve from the second quarter onwards. It also expected export demand from Europe, USA and UK markets to be impacted by high ocean freight.