For the third quarter Century Textiles’ profit fell by 38 per cent. This was due to weakness in its textile business and losses in its real estate unit.
The home textile business revenue at its textile unit Birla Century fell by nine per cent, accounting for about 22 per cent of total revenue. Higher input prices led to sales volatility of garments and fabrics. While demand in its domestic markets was stable, exports took a hit amid recessionary concerns. About three-quarters of the Mumbai-based company’s total revenue comes from its pulp and paper business, where sales rose 18 per cent in the quarter. That helped consolidated sales increase nearly by ten per cent. While revenue in the Birla Estates business rose nearly five per cent from a year ago due to new projects in Mumbai and Bangalore, its loss widened from the prior quarter. That weighed on overall net profit and also dragged consolidated earnings before interest, taxes, depreciation and amortisation (ebitda) down 13 per cent.
Century Textiles and Industries is the flagship company of Aditya Birla. Founded in 1897, Century Textiles specialises in textiles including cotton textiles, yarn, denim, and viscose filament rayon yarn. It also has a pulp and paper business.