The Pulp & Paper business as well as Real Estate business performed well
FinTech BizNews Service
Mumbai, 20 October 2023: Century Textiles and Industries has announced its Q2, 2023-24 results today.
Commenting on the Q2 FY24 results, R. K. Dalmia, Managing Director, Century Textiles and Industries Limited (CTIL) said: “The company has weathered the impact of changing market dynamics, even amid a string of geopolitical crises affecting global demand, with its robust and sustainable manufacturing practices. The Pulp and Paper business performed consistently well, achieving better sales volumes during the quarter. The Real Estate business has not only showcased stellar sales performance during the quarter but has also strengthened its sectoral presence with high development potential acquisitions. This reinforces its commitment to robust future growth. Meanwhile, after a strategic restructuring of operations, our Textiles business has seen a notable improvement, achieving a better sales turnover this quarter.”
PULP & PAPER BUSINESS
· Q2 FY24 sales volumes increased by 8% as compared to Q1 FY24.
· Plant achieved overall capacity utilization of 89% in this quarter.
REAL ESTATE BUSINESS
· Acquired significant projects in Thane (Development Potential Rs. 7600 Crs.), New Delhi (Rs. 2700 Crs.) which represent our strong commitment towards growth and strengthening our presence in Metros.
· Received a spectacular response to the launch of Phase I of Birla Trimaya in Bengaluru, selling almost the entire phase with a booking value of Rs. 467 Crs. within 36 hours.
· Delivery for Birla Alokya, Bengaluru to start from Oct’23. Projects in MMR and Gurugram slated for delivery later in FY24.
TEXTILES BUSINESS
· Turnover has increased by 8% to Rs. 235 Cr. in Q2 FY24 as compared to Rs. 218 Cr. in Q1 FY24.
· Capacity utilisation in Q2 FY24 was 86% as compared to 91% in Q1 FY24.
OUTLOOK
Dalmia says: “Writing & Printing paper demand is expected to increase due to the seasonal impact of festivals in Q3 FY24. Copier demand is expected to rise towards the end of the quarter. Higher import volumes in Writing & Printing and copier segments may impact price increases in these segments, due to adequate supply balancing the improving demand. Exports are expected to improve with better realization and price stability.”
Tissue demand is expected to improve in Q3 FY24. The focus will be more on domestic sales for better realization while also looking out for opportunities to strengthen export volumes basis improved realizations.
Dalmia adds: “Demand for Board is expected to improve due to upcoming festival season in Q3 FY24. The order position is anticipated to improve in response to expected price increases, adopted by both domestic and international mills, as a measure to alleviate extreme cost pressures. Export demand is projected to improve marginally.”
REAL ESTATE BUSINESS
The Indian real estate sector is witnessing sustained growth, driven by buoyant consumer sentiment, robust property launches and competitive pricing. Strong demand and absorption rates across all categories in Q2 FY24 are expected to continue in Q3 FY24 due to the upcoming festival season despite the increase in housing prices. Dalmia further adds: “We are optimistic about the sector’s future, having witnessed growing interest from buyers in premium housing. This is largely attributed to the rising GDP per capita, increasing disposable incomes, and urbanization. Our singular focus on capitalizing on good opportunities in the luxury segment further bolsters our confidence.”
TEXTILES BUSINESS
In Q2 FY24, the company made a strategic decision to restructure the textile manufacturing operations that would result in enhanced profitability and reduced fixed costs. Dalmia adds: “The rationalization process is expected to continue in Q3 FY24 and we expect to see positive results from Q4 FY24 onwards. Given the constantly changing market dynamics against the backdrop of the ongoing geo-political crises, we have shifted our focus from maximum productivity to optimum profitability. With the support of our dedicated state-of-the-art R&D facility, design and supply chain teams, we are developing new sustainable products that offer better traceability across our value chain to cater to various international brands. With several FTAs in finalization stages, we expect the fabric and garment retail market demand to improve from Q4 FY24.”
