According to the business standard, India’s paper and paper products industry is experiencing rapid growth, projected to reach USD 9.25 billion by 2024 and USD 11.91 billion by 2030, with a CAGR of 4.37%2.
The domestic market consumes approximately 22 million tonnes annually, making India the fastest-growing paper market globally, with an annual growth rate of 8.2% in packaging paper.
Century Textiles and Industries Ltd also known as Aditya Birla Real Estate has a market capitalization of Rs 30,325.38 crore, the shares closed at Rs 2,715 per share, increased around 0.95 percent as compared to the previous closing price of Rs 2689.40 apiece.
Financial performance:-
The company’s revenue saw a 28% rise, growing from ₹894 crore in Q1 FY24 to ₹1,149 crore in Q1 FY25. Net profit surged by 342%, shifting from a ₹7 crore loss to a ₹17 crore profit, reflecting strong revenue and profitability growth.
Revenue Split:-
In FY23-24, Century Textiles and Industries’s total segment revenue reached ₹4,276.70 crore in FY23-24, a 19% increase from ₹3,593.84 crore in FY22-23. The majority of revenue, 78%, came from the Paper and Pulp products segment, followed by the real estate business at 20% and with other sources contributing the remaining 1%.
Segment Highlights:-
Birla Estate’s revenue grew over 800% year-on-year to ₹338 crores in Q1 FY’25, with bookings of ₹262 crores. The company maintained strong collections of ₹488 crores and acquired major land parcels in Gurugram and Pune. Projects worth ₹12,000 crores are planned for FY’25.
In the pulp and paper segment, Q1 FY’25 saw a 6% drop in turnover to ₹786 crores. EBITDA stood at ₹65 crores with an 8.3% margin. Cost reduction initiatives were implemented, and a moderate pricing revival is expected by Q2 FY’25, alongside seasonal impacts on tissue demand.
Market outlook:-
The residential real estate market is expected to experience significant growth in the coming quarters, fueled by infrastructure development and smart city expansion. Investors continue to see the Indian real estate sector as a secure and profitable long-term investment, enhancing market confidence.
Management guidance:-
The company is confident in meeting its sales targets for the year and anticipates significant growth in presales over the next 3-5 years. Investments are being made to acquire new projects and expand capabilities, despite facing land scarcity in certain markets.
Moreover, a strong focus remains on delivering quality, enhancing customer experience, and fostering community development. Future projects, such as Century Bhavan, are under evaluation for potential development, reflecting the company’s ongoing commitment to strategic growth and long-term success in the real estate sector.
Challenges:-
The company faces challenges in the paper segment due to rising input costs and global supply chain disruptions. However, management remains optimistic about sustained demand and strong public investment. They are confident in real estate sector growth, driven by favorable market conditions and stable economic factors.
Company snapshot:-
Century Textiles & sectors Ltd. has grown from a single-unit textile company in 1987 to a commercial powerhouse with holdings in a variety of sectors. Currently, the company is a trendsetter in cotton textiles and has a strong presence in the pulp & paper and real estate industries.
Written by:- Abhishek Singh
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