Century Textiles 69% Jump In Profits Fails To Impress Investors

Century Textiles’ share price continued to make gains for the second straight day as the company posted its earnings for the quarter ended March.

What Happened: The company’s consolidated net sales remained flat in the March quarter at ₹1,187 crore. EBITDA for the period stood at ₹265 crore, up 99% from last year’s number of ₹133 crore. Net Profits surged 69% year-over-year to ₹142 crore.

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The huge uptick in EBITDA and profits despite sales remaining flat were the results of a ₹134 crore exceptional item that the company received on the reassignment of leasehold land in Gujarat. The biggest share in revenue came from the Aditya Birla Group company’s paper and pulp segment. Sales in the business grew 5% YoY to ₹910 crore in Q4. However, the company expects the writing and printing paper (WPP) demand to remain low due to the seasonal impact of the closure of education hubs in summer.

The company’s EPS for the quarter stood at ₹13.01. The company has also declared a ₹5 dividend/share for FY23.

Price Action: Century Textiles’ share price was up % to trade at ₹ as the markets opened on Monday.

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Posted In: EarningsNewsDividendsTrading IdeasAditya Birla GroupCentury Textiles