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Century Textiles Q3 standalone net profits rise 423.2 per cent yoy

Century Textiles & Industries (CTIL) reported strong net sales as it grew strongly by 17.6 per cent yoy to Rs2,069.5cr (net of excise duty for the base quarter). EBITDA reported 39.8 per cent yoy rise to Rs333.8cr. Led by cost saving in raw material, employee and other expenses, as a per cent of net sales, EBITDA margin expanded by 257bps yoy to 16.1 per cent. Further, with lower interest cost coupled with margin expansion, post adjusting for losses of discontinued operations (PAT) spiralled up significantly to Rs89.9cr as against Rs17.2cr in Q3FY17.

The textile segment reported 5.1 per cent yoy growth in revenue at Rs385.2cr with EBIT margin of 11.2 per cent (65bps yoy contraction). The quarterly numbers were healthy post subdued performance of H1FY18. During the quarter, the company entered into an agreement with Grasim Industries granting it the right to manage and operate the company's viscous filament yarn business for 15 years, commencing February, 2018 on a mutually agreed date.

Grasim will be paying Rs 600 cr upfront royalty along with a Rs200cr refundable security deposit (repayable after 15 years). Additionally, CTIL incorporated a wholly owned subsidiary, Birla Estates, to focus on the real estate business.