Century Textiles share price hits new life high, as company turns profitable in Q1, stock up 20%

Century Textiles and Industries shares spurted 20 per cent and touched a new 52-week high to Rs 819.5 per share on the BSE intraday trade on Wednesday on the back of strong Q1 numbers. 

The company posted a consolidated net profit of Rs 25 crore in the June-ended quarter of fiscal 2022 (Q1FY22) amid strong operational performance, as against the net loss of Rs 36 crore in Q1FY21.

The stock rebound over 22 per cent from its intraday low of Rs 668.85 per share to breach its earlier high of Rs 736 per share, hit on July 19, 2021. The stock ended with over 16 per cent gain to Rs 796 per share on the BSE as against a 0.26 per cent decline in the S&P BSE Sensex.

Net sales grew significantly by 111 per cent year-on-year (YoY) at Rs 832 crore during the quarter, versus Rs 394 crore in the corresponding quarter of the previous fiscal. While EBITDA also saw a substantial jump of 289 per cent to Rs 117 crore on a YoY basis on Wednesday. 

The manufacturing businesses witnessed a strong turnaround on the back of continuous drive towards product innovation, customer centricity, and better financial management, the company said.

The pulp & paper business performed well in the quarter due to strong demand from tissue and board segments. The textiles business also saw a major turnaround supported by strong demand in the bed linen segment and the realty business posted a significant jump in collections along with leasing income.

On the outlook, the management said the upcoming festive season should introduce a new normal for the textile segment. The business is expected to accelerate between August to December this year, in both the domestic as well as export markets.

Considering the present economic environment and the uncertainty over the third wave, the short to medium-term outlook for the Indian paper, industry appears to be volatile.