Century Textiles sees decline as Q4 profits drop 4% YoY to Rs 1.6 billion

The export demand from Europe, USA, and UK markets is consistent and expected to improve in FY25.

Century Textiles & Industries witnessed a decline of 4.40% to Rs 1,849 as the Aditya Birla Group company announced a 4.40% decrease in consolidated net profit, dropping to Rs 1.60 billion in Q4 FY24 from the previous Rs 1.67 billion in Q4 FY23.

It was reported that the company’s revenue from the Pulp & Paper business had fallen by 5.58% to Rs 8.59 billion in Q4 FY24, compared to the Rs 9.09 billion recorded in Q4 FY23.

In Q4 FY24, it was mentioned that overall production volumes had increased by 6% Y-o-Y, albeit being 4% lower than the previous quarter. Sales volumes had seen a 13% Y-o-Y increase. However, the continuous reduction in NSR had a negative impact on Sales Turnover and EBITDA.

Regarding the outlook, the company indicated that there was an expectation for the demand for writing & printing and copier paper to improve post elections, with government tenders opening in Q1 FY25. Additionally, seasonal factors were anticipated to moderately revive demand, along with an increase in exports offering better realizations and greater price stability.

The export demand from Europe, USA, and UK markets was said to be consistent and expected to improve in FY25. However, it was noted that oversupply in the market was likely to persist in FY25 due to the market growth being lower than the capacity added by domestic as well as international mills.

In the textiles segment, revenue remained constant year on year at Rs 120.49 million in Q4 FY24.

Following careful consideration and deliberation, the board approved the proposal to discontinue all operations at the Birla Century Bharuch unit except for some minor manufacturing operations and other allied activities relating to the supply of Yarn to Birla Advanced Knits, a joint venture of the company and Grasim Industries.

In the Real Estate business, revenue surged to Rs 920.16 million in Q4 FY24, significantly higher than the Rs 360.12 million in Q4 FY23. The booking value stood at Rs 28.81 billion in Q4 FY24, with 0.58 million square feet sold.

Additionally, the company’s board recommended a dividend of Rs 5 for the financial year ending on March 31, 2024.

Furthermore, the board approved the sale of machinery from the discontinued Spinning and Weaving departments of the Textile division of the company located at Bharuch, Gujarat.

Century Textiles & Industries operates in the cotton textiles, pulp & paper, and real estate sectors.