Century Textiles dips as profit falls 4 per cent in Q4

Century Textiles & Industries share price dropped 4.4 per cent after reporting a decline in net profit for Q4 FY24. The profit fell to Rs 160.28 crore compared to Rs 167.66 crore in the same quarter last year. This decrease is attributed to a 5.58 per cent drop in revenue from the pulp & paper business.

Despite a 6 per cent YoY rise in overall production volume, sales volume played a bigger role with a 13 per cent YoY increase. However, persistently falling Net Sales Realization (NSR) impacted overall sales and profitability.

The company expects demand for writing & printing paper to pick up after elections due to government tenders. Seasonal factors and rising exports are also expected to improve the situation. However, oversupply in the market is likely to persist due to capacity expansion exceeding market growth.

The textile segment's revenue remained flat at Rs 12.49 crore. The company will discontinue most operations at its Birla Century Bharuch unit, except for minor activities related to supplying yarn to a joint venture.

On a positive note, the real estate business boomed with revenue reaching Rs 92.16 crore, significantly higher than the previous year. The board recommended a dividend of Rs 5 per share for FY24 and approved the sale of machinery from the discontinued textile departments.