India: Century Textiles’ net profit at Rs 376.5 mln in Q1, ’13-14

Company Performance

India: Century Textiles’ net profit at Rs 376.5 mln in Q1, ’13-14

Century Textiles and Industries Ltd, a leading cotton textiles manufacturer in India, in the first quarter of 2013-14, has earned a net profit of Rs 376.50 million. This is a significant improvement of 109.75% over the preceding quarter. In the corresponding quarter of the previous year, the company’s net profit was Rs 24.10 million.

The company’s net sales during April-June 2013 stood at Rs 15.73 billion, at almost the same level as in the preceding quarter, even as net sales grew a healthy 14.65% over the corresponding three months of the previous financial year.

Segment Revenue - Textiles

The company’s textiles division earned a PBT of Rs 340.90 million in the first quarter of this financial year. This was a strong growth of 247.50% over the preceding quarter, and a 97.39% growth over the corresponding quarter.

Net sales of the division at Rs 3.94 billion during April-June 2013, were 3.89% lower than in the previous quarter and 2.35% higher than in the corresponding period.

Expansion

In 2013, the company has installed three additional Pot Spun Yarn (PSY) spinning machines with balancing equipment in spin bath and four CSY spinning machines. The company is commissioning six Continuous Spun Yarn (CSY) spinning machines by March 2014, which will increase its capacity of PSY and CSY by about 1800 tons.

In an effort to improve exports in a depressed international market, Century Textiles is exploring new products – dyed shirtings to UK and UAE markets, and dyed viscose filament yarns (VFY) to South Africa, Europe and North Africa.

According to Kumar Mangalam Birla, Chairman, Aditya Birla Group, “A weak rupee will help export growh. Outlook for cotton textiles is expected to be positive on account of better demand, and margins are expected to improve.”

Speaking about the viscose filament yarn business, he said, “The market for VFY during the year 2012-13 remained stable. Market for rayon tyre yarn has further declined due to a slowdown in the European economy resulting in capacity utilization only to the extent of 50%, against 67% earlier.”