Century Textiles turns corner & reports Q4FY15 net profit

09 May '15

3 min read

BK Birla led Century Textiles & Industries Ltd turned corners and reported a profit in the fourth fiscal quarter ending March 31, 2015 as against a loss in the corresponding quarter of fiscal 2014.

In a press release, the textiles, pulp and cement manufacturer said its net profit for the fourth quarter of fiscal 2015 touched Rs 11.81 crore from a loss of Rs 4.90 crore for the quarter ended March 31, 2014.

Overall net profit was driven by the Pulp and Paper division, which too saw its profit after depreciation but before finance costs and exceptional items total to Rs 49.11 crore from a loss of Rs 1.84 crore.

In the reporting quarter, Century Textiles recorded sales of Rs 2105.5 crore, up 13.71 per cent when compared to Rs 1851.63 crore it posted in the prior fiscal fourth quarter.

Of this, fourth quarter of fiscal 2015 revenue from the textile segment rose 8.74 per cent to Rs 460.30 crore as against Rs 423.29 crore in the same quarter of last fiscal.

Sales of the Pulp & Paper segment grew slower at 2.23 per cent year over year and amounted to Rs 450.07 in the quarter under review.

The textile division posted a profit after depreciation but before finance costs and exceptional items at Rs Rs 29.05 crore, down 11.72 per cent from Rs 32.91 crore.

Overall expenses at Century Textiles climbed 11.24 per cent from Rs 1951.65 crore in the quarter under review to Rs 1754.38 crore in the fourth quarter of previous fiscal.

Higher expense was driven by employee benefits which jumped from Rs 178 crore to Rs 108.83 crore, up a massive 63.55 per cent, while cost of material consumed inched up 6.50 per cent to Rs 724.66 crore.

Profit before finance costs and exceptional items soared 54 per cent to Rs 157.89 crore in the quarter ended March 31, 2015 to Rs 102.58 in the same quarter of last fiscal.

Finance costs also expanded steeply in the reporting quarter to Rs 139.26 crore, up a steep 48.62 per cent compared to Rs 93.70 crore from a year earlier.

Resultantly, pre-tax profit more than doubled to Rs 18.63 in the quarter ended March 31, 2015 compared to Rs 8.88 crore in the quarter ended March 31, 2014.

Century produces a wide portfolio of textiles products like cotton yarn, denim fabrics, cotton apparel, viscose filament yarn (VFY), continuous spun yarn (CSY), rayon tire yarn and chemicals. (AR)

Fibre2fashion News Desk - India

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