Aditya Birla Real Estate
Century Textiles posted an excellent set of numbers for Q2FY17, spurred on mainly by the phenomenal performance of the pulp and paper sector and realty unit.
The company’s total income for the quarter was down 4.5% (YoY) at Rs.2034 crore, led mainly by the 5% fall in textile sectors revenue and 13% drop in cement division topline. But the fall was curtailed by a 7% jump in pulp and paper unit and a 4 times rise in realty topline. Lower costs, down 8% also helped shore up the bottomline, mainly by the 9% drop in raw material costs, 10% drop in excise duty outgo, 15% drop in power and fuel and costs and a 10% drop in freight, forwarding, octroi and other costs.
EBITDA for the quarter came in at Rs.225 crore, up 56% and margins improved from 7% to 11%. Net profit was at Rs.41 crore v/s loss of Rs.31 crore in previous Q2.
In terms of EBIT across verticals, paper did the best – contributing around Rs.80 crore, showing a 102% increase. Cement also did well with EBIT rising 108% at Rs.25 crore. Textiles rose just 17% contributing Rs.49 crore and realty showed a five times rise at Rs.14 crore – this mainly rental income coming from leasing out Rs 2 lakh sq ft in Century Bhavan at Prabhadevi.
As at 30th Sept 2016, the company’s cash stands at Rs.115 crore and debt stands at around Rs.5000 crore. Equity is at Rs.111.69 crore and EPS for H1FY17 is at Rs.3.76. Our editor, Mr.SP Tulsian says, “I would not be surprised to see an EPS of closer to about Rs 12-13 for FY17, but FY18 will really be a big kicker because of the property and because of the cement division”.