Quarterly Results: Century Textiles and Industries Ltd

Century Textile & Industries Limited, a leading Indian conglomerate, has reported its total annual sales for the financial year ended March 2023, which was Rs. 4,827.17 crore compared to Rs. 4,174.01 crore last year. This indicates an impressive annual growth rate in revenue. The company also reported an annual net profit of Rs. 264.55 crore compared to Rs. 181.7 crore last year. The increase in profits can be attributed to an exceptional item of Rs. 134 crore, while last year, it was zero.

The Pulp & Paper division was the major contributor to the growth in revenue, registering a revenue of Rs. 3,571.71 crore, compared to Rs. 2,817.79 crore last year. The Textile division reported Rs. 1,000.74 crore compared to Rs. 1,087.23 crore last year, while the revenue from Real Estate was Rs. 138.07 crore, and last year it was Rs. 139.21 crore. The current year’s earnings per share were Rs. 24.34, which is higher than last year’s Rs. 14.23.

The operating margin improved to 6.26% compared to 5.43%, while the net profit margin also improved to 5.51% compared to 3.91%. The Debt to Equity ratio reduced to 0.26 compared to 0.34 last year, indicating a better financial position. The Debt Service Coverage Ratio stood at 0.74 compared to 2.25, while the Interest Service Coverage Ratio was 6.08, similar to last year’s.

The consolidated net worth increased to Rs. 4,038.95 crore compared to Rs. 3,876.85 crore last year. The total debts to total asset ratio also improved to 0.13 compared to 0.17. However, on a quarterly basis, the company reported flat sales but high profits due to an exceptional item of Rs. 134 crore. The sale for the quarter ended March 2023 was Rs. 1,218.08 crore compared to Rs. 1,218.29 crore in the same quarter last year.

During the quarter, the company transferred its leasehold land in Gujarat to Grasim Industries Limited, resulting in a net gain of Rs. 134.21 crores as an exceptional item. The board of directors have recommended a dividend of Rs. 5/- per equity share of Rs.10/- each equivalent to 50% on paid-up equity share capital of the company for the year ended March 31, 2023.

The company is organized into four reportable segments based on its products and services: Textiles, Pulp and Paper, Real Estate, and Others. The overall performance of the company was not so good, not so bad. However, Birla Advance Knits Private Limited, a Joint Venture of Group, has commenced its commercial operations on April 1, 2023.