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Key Highlights of Q2 FY23

• Net sales increase by 21% YoY...UP
• EBITDA rises 42% YoY...UP
• PAT surges by 118% as compared to Q2 FY22...UP

FINANCIAL SUMMARY – (Continuing Operations)

Commenting on the Q2 FY23 results, R K Dalmia - Managing Director, Century Textiles and Industries Limited (CTIL) said –

“Building upon the momentum initiated in the previous quarter, the company performed even better in this quarter, especially due to increased market demand during the festive season, favourable impact of the single-use plastic ban as well as several cost-reduction initiatives implemented across our production facilities. The Pulp and Paper business delivered stellar performance backed by increased demand across all segments with timely price corrections and cost reductions. While the Textiles business is facing challenging times, apparel fabric demand has been stable in the domestic market. The Real Estate business registered robust growth with propped up demand for quality housing on account of the stable job market and steady infrastructure investments.’’

SEGMENTAL PERFORMANCE

PULP & PAPER BUSINESS

• Sales have increased by 37% to Rs. 942 Cr. in Q2 FY23 as compared to Rs. 686 Cr. in Q2 FY22
• Sales realization has increased by 45% in Q2 FY23 as compared to the same quarter of FY22.
• Substantial increase in EBITDA by 69% to Rs. 193 Cr. as compared to Rs. 114 Cr. in Q2 FY22.
• The plant achieved overall capacity utilization of 96%.

REAL ESTATE BUSINESS

• Achieved sales (Booking Value) of Rs. 561 Cr. in Q2 FY23 with significant contribution from the Birla Niyaara (Worli) Project, which has achieved cumulative sales of Rs. 1766 Cr. till Q2 FY23.
• A stellar performance in Safety with completion of over 13 million safe man-hours at all under-construction projects.
• Birla Estates acquired a 10-acre land parcel in Raja Rajeshwari Nagar in Bengaluru making it the 4^th project in that market.

TEXTILES BUSINESS

• Turnover has decreased by 14% to Rs. 224 Cr. in Q2 FY23 as compared to Rs. 261 Cr. in Q2 FY22.
• Capacity utilisation in Q2 FY23 was 86% as compared to 91% in Q2 FY22.
• Apparel fabrics demand is stable in the domestic market. Export markets are severely impacted as rising interest rates are weighing heavily on economic activity worldwide, which has impacted the home-textile business.
• Toward energy conservation, the business has won Gold at SNEMA 2022.

OUTLOOK

PULP AND PAPER BUSINESS

Writing & Printing paper (WPP) demand is expected to increase on account of the single-use plastic ban despite heavy cost pressure in the domestic market due to imports and price corrections by lower-grade mills. The tissue segment is expected to perform better in Q3, with major tissue consumption centres being fully operational. The board segment market is expected to be subdued due to lower demand and competitive low-priced imports. With the reopening of most paper consumption centres and subsiding high input prices, the short to medium term outlook for the Indian paper industry appears to be positive.

REAL ESTATE BUSINESS

The industry outlook remains positive with the festive season in full swing and favourable homebuyer and investment sentiments towards real estate. With a significant part of the workforce returning to offices and active sourcing of new workspaces by IT companies, flex operators and start-ups, the commercial sector is also seeing strong growth. The demand fundamentals are expected to remain robust on account of India’s distinct position as an oasis of stability amidst fears of a global economic slowdown in the near term.

TEXTILES BUSINESS

After introducing ‘Virasat’ and riding on the success of ‘Hill & Glade’, the focus would now be on developing SMART fabrics i.e., a collection of functional fabrics with special attention to comfort, practicality and durability, and to launch them in domestic as well as international markets. Domestic apparel demand is expected to remain steady, despite volatile raw material prices, uncertain geopolitical environment and high inflation

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