Mumbai: Diversified firm Century Textiles & Industries Ltd on Tuesday reported a 68% fall in Oct-Dec net profit, despite higher sales, hurt by rising commodity costs it was unable to offset through price increases.
“All input costs have gone up and the market has slowed down, the realisations are very poor,” senior president RK Dalmia told Reuters over the phone.
Century Textiles reported a quarterly profit of Rs23.14 crore, compared with Rs72.8 crore a year ago.
Its total income rose marginally to Rs890 crore from Rs850 crore, helped by higher sales in its cement and textiles segments.
A Reuters poll of brokerages had forecast net profit of Rs24 crore on sales of Rs765 crore for the same period.
Its consumption of raw materials rose to Rs241 crore from Rs185 crore a year ago, hurting profitability.
The firm, which makes denim, paper, cement and yarn, had increased prices by about 10% across categories over the last six months, Dalmia said.
“But the price increases could not offset the rising costs,” he said.
The numbers for the October-December period include an income of Rs8.9 crore from the sale of old machinery at its textile mill at Worli in Mumbai, Dalmia said.
Sales at the company’s cement division, which contributes more than half its revenue, rose about 7% to Rs504 crore. Its textiles sales rose 14.8% to Rs170 crore.
Dalmia said it was difficult to give an outlook for the Jan-March period due to the economic uncertainty.
Shares of Century Textiles ended down 2.78% at Rs155.55 in a firm Mumbai market.