Century Textiles slips 4%

Century Textiles opened at the days low point at Rs.302, a loss of 4% over yesterday’s close of Rs.31460 but soon recouped and went up to Rs.310, coming down again to Rs.305 levels.

The stock price fell as it reported a 44% (YoY) drop in consolidated net profit at Rs.80 crore on an over 8.5% drop in net sales at Rs.770 crore. Its ‘other operating’ income fell 83% and other income by 79% thereby bringing down the total income by 21% at Rs.801 crore.

Its ‘other operating income’ in Q4FY19 included Rs.71 crore on account of credit of duty paid on fulfilment of export obligation by utilizing prior year exports of other divisions based on endorsements received from Director General of Foreign Trade. Further provision towards interest on such obligation amounting to Rs. 9.75 crores and Rs. 56.48 crores has been written back and included in Other Income for the year ended March 31, 2020 and March 31, 2019 respectively.

Its total expenses rose 2% and this was mainly on account of the 67% rise in interest cost and 16.5% rise in employee costs.

The company said that it was impacted by the lockdown as all its manufacturing units were shut but have now resumed operations and are in the process of scaling up its operations. The Group believes that the pandemic is not likely to impact the recoverability of the carrying value of its assets. As the situation is continuously evolving, the eventual impact may be different from the estimates made as of the date of approval of these financial statements.