Century Textiles reports over two-fold surge in net profit during Q3

BK Birla Group company Century Textiles and Industries Monday reported a standalone net profit of Rs 88.48 crore for the third quarter ended December 2018. It had posted a net profit of Rs 43.31 crore in the corresponding quarter of last year, Century Textiles and Industries said in a BSE filing.

Its total income during the quarter stood at Rs 957.22 crore. It was Rs 1,033.46 crore in the corresponding quarter last fiscal. Meanwhile, the company said its results for the quarter and the nine months ended December 31, 2018, are "not comparable" with the corresponding periods.

In the previous financial year, it had granted the right to manage and operate its company's Viscose Filament Yam business, to Grasim Industries for 15 years and as a part of that received an upfront royalty of Rs 600 crore. "The company is recognising royalty over the period of 15 years on pro-rata basis," it added.

Moreover, the company also classified its cement division as "discontinued operations" during the quarter as shareholders of Century Textiles and Industries have approved its merger into UltraTech through a share-swap deal. Century Textiles' total expenses stood at Rs 820.36 crore.

Its revenue from the textile segment was Rs 199.69 crore and Rs 697.51 crore from the pulp and paper segment. Shares of Century Textiles and Industries Monday settled at Rs 813.55 apiece on the BSE, down 2.60 per cent from the previous close.