CENTURY TEXTILES Industries Ltd Q2 Results

Century Textiles And Industries Ltd. has posted disappointing results for Q2 ending Sept. 08. All three divisions of the company viz. Textiles, Cement and Paper needs to be blamed for this dismal performance. Textile division having posted a revenue of Rs. 175 crores (Rs.165 crores) for the quarter had a negative EBIT of Rs.28 crores (negative EBIT of Rs.6.50 crores) while cement segment recorded an EBIT margin of 16.50% against 24.40% of previous quarter. Inspite of a 10% rise in topline for cement sector at Rs.444 crores (Rs.400 crores) EBIT was lower at Rs.73 crores (Rs.97.50 crores). Same thing goes with paper division where EBIT margin sharply fell to 8.30% from 17%. Turnover of this division was higher at Rs.226 crores (Rs.199 crores) but EBIT was sharply lower at Rs.18.70 crores (Rs.74 crores).

Due to these reasons, though topline of the company for the quarter grew to Rs.868 crores (Rs.780 crores) Profit before tax and exceptional item fell by almost half to Rs.64.50 crores (Rs.128 crores). Exceptional income of Rs.33 crores on sale of assets of textile mill at Worli has been able to keep PAT of the company at some respectable level at Rs.28.50 crores (Rs.66.37 crores) EPS is placed at Rs.3 (Rs.7.13) after considering exceptional items.


However, this dismal performance seems to have been factored in the stock price, which is now ruling Rs.192. The present market capitalization of the company is close to Rs.1,800 crores while enterprise value of the company is at Rs.2,500 crores, including net debt of Rs.700 crores.

If one considers the value of 40 acres land of the company at Worli, where textile mills used to locate and now vacated is having net present value of over Rs.4,000 crores, even in this market. But who care for all this. If you have not liked the company there are no takers.
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