BENGALURU (Reuters) – Century Textiles and Industries Ltd, the flagship company of India’s Aditya Birla Group, reported a 38% drop in third-quarter profit on Tuesday, due to weakness in its textile business and stagnant losses in its real estate unit.
The company’s consolidated net profit fell to 87.2 million rupees ($1.1 million) in the three months ended Dec. 31 from 141.5 million rupees a year ago.
Home textile business revenue at its textile unit Birla Century fell 9% to 2.50 billion rupees, accounting for about 22% of total revenue.
The company said higher input prices led to sales volatility of garments and fabrics, adding that while demand in its domestic markets were 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 18.1% in the quarter.
That helped consolidated sales increase nearly 10% to 11.50 billion rupees.
Shares of the company fell sharply after the results were announced but were last up about 5%.
While revenue in the Birla Estates business rose nearly 5% from a year ago due to new projects in Mumbai and Bengaluru, its loss widened to 177.5 million rupees from 171.5 million rupees from the prior quarter.
That weighed on overall net profit and also dragged consolidated earnings before interest, taxes, depreciation and amortisation (EBITDA) down 13.3% to 910 million rupees.
($1 = 81.6660 Indian rupees)
(Reporting by Manvi Pant in Bengaluru; Editing by Rashmi Aich)
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