Aditya Birla Real Estate Limited

J. C. Laddha

MD, CENTURY TEXTILES AND INDUSTRIES LIMITED

R. K. Dalmia

SENIOR PRESIDENT AND WHOLE TIME DIRECTOR, CENTURY TEXTILES AND INDUSTRIES LIMITED

Snehal Shah

GROUP CFO, CENTURY TEXTILES AND INDUSTRIES LIMITED

K. T. Jithendran

CEO, BIRLA ESTATES, CENTURY TEXTILES AND INDUSTRIES LIMITED

Vijay Kaul

CEO, PULP & PAPER DIVISION, CENTURY TEXTILES AND INDUSTRIES LIMITED

Nilay Rathi

SENIOR VICE PRESIDENT, COMMERCIAL, CENTURY AND INDUSTRIES LIMITED TEXTILES

Amit Srivastava

BATLIVALA & KARANI

6.1%

ical situation are matters of concern. Global growth is projected to slow down from an estimated 6.1% in 2021 to 3.6% in 2022, as well as 2023. Despite these disruptions highlighted before, Century Te

3.6%

re matters of concern. Global growth is projected to slow down from an estimated 6.1% in 2021 to 3.6% in 2022, as well as 2023. Despite these disruptions highlighted before, Century Textiles and Indu

58%

ess saw steady sales due to a sustained demand momentum with Birla Niyaara project sales reaching 58% of the launched inventory in less than 6 months of launch. The Paper segment is witnessing impro

41%

ights for the first quarter of the financial year 2023 were that the consolidated turnover grew by 41% year-on-year basis to INR 1,172 crore due to a significant demand revival in both the manufacturin

INR 1,172 crore

r of the financial year 2023 were that the consolidated turnover grew by 41% year-on-year basis to INR 1,172 crore due to a significant demand revival in both the manufacturing businesses of paper and textiles, th

49%

ival in both the manufacturing businesses of paper and textiles, the Pulp & Paper business grew by 49% and Textile business grew by 31% Y-o-Y. The EBITDA for quarter 1 FY'23 grew by 22% Y-o-Y to INR

31%

sinesses of paper and textiles, the Pulp & Paper business grew by 49% and Textile business grew by 31% Y-o-Y. The EBITDA for quarter 1 FY'23 grew by 22% Y-o-Y to INR 143 crore with consolidated EBIT

22%

iness grew by 49% and Textile business grew by 31% Y-o-Y. The EBITDA for quarter 1 FY'23 grew by 22% Y-o-Y to INR 143 crore with consolidated EBITDA margins of 12% and the net profit after tax stood

INR 143 crore

49% and Textile business grew by 31% Y-o-Y. The EBITDA for quarter 1 FY'23 grew by 22% Y-o-Y to INR 143 crore with consolidated EBITDA margins of 12% and the net profit after tax stood at INR 45 crore, which

12%

EBITDA for quarter 1 FY'23 grew by 22% Y-o-Y to INR 143 crore with consolidated EBITDA margins of 12% and the net profit after tax stood at INR 45 crore, which grew by 80% Y-o-Y. Now let me take yo

INR 45 crore

o-Y to INR 143 crore with consolidated EBITDA margins of 12% and the net profit after tax stood at INR 45 crore, which grew by 80% Y-o-Y. Now let me take you through some of the key highlights across our thr

80%

nsolidated EBITDA margins of 12% and the net profit after tax stood at INR 45 crore, which grew by 80% Y-o-Y. Now let me take you through some of the key highlights across our three business vertica

“We would start the call with opening remarks from the management, which will be followed by Q&A.”

“Our real estate business saw steady sales due to a sustained demand momentum with Birla Niyaara project sales reaching 58% of the launched inventory in less than 6 months of launch.”

“As you may all be aware recently in February 2022, we launched our Birla Niyaara project and within less than 6 months, we have achieved sales of almost INR 1,600 crore or about 58% of the launched inventory.”

“Therefore, this segment short- and medium-term market conditions look positive.”

“As soon as we get this, we will be launching that phase fully.”

“So, I'm pretty confident that this quarter we will be launching the Navya phase and Kalyan also we will be showing some traction because of the launch of the last phase.”

“But then from next quarter onwards, it'll get regularized, because then it'll fall into a proper cycle.”

“I think for the current year, as the input costs are very high, definitely it'll be difficult, but will be around that little less than 20%.”

“So, we hope to catch up to almost 18% by this year end.”

“And maybe by next year we would be another 25,000, 30,000 tons higher than what it is this year.”

J. C. Laddha

11

Vijay Kaul

8

Moderator

6

Biplab Debbarma

6

KT Jithendran

5

R. K. Dalmia

2

Snehal Shah

2

K. T. Jithendran

2

Ishrat Khatri

2

Viraj Parekh

2

Amit Srivastava

Yes. Thank you, Gizel. Hello everyone. On behalf of B&K Securities, welcome you all to the 1Q FY'23 earning conference call with the management of Century Textile. We have with us the top management of Century Textile management is represented by Mr. J. C. Laddha, MD; Mr. R. K. Dalmia, Senior President and Whole Time Director, we like to congratulate him for getting promoted as MD; Mr. Snehal Shah, Group CFO; Mr. K. T. Jithendran, CEO, Birla Estates; Mr. Vijay Kaul, CEO, Pulp & Paper Division; and Mr. Nilay Rathi, Senior Vice President, Commercial. I would like to thank the management for giving us the opportunity to host the earnings call. We would start the call with opening remarks from the management, which will be followed by Q&A. Over to you, sir.

J. C. Laddha

Thank you. A very good morning to everyone joining us today. It is my pleasure to welcome you all to the earnings conference call for the first quarter of the financial year 2023. Let me start by briefing you on the macro environment before moving onto the performance of the quarter in Q1 FY'23. Although the financial year started off with high commodity prices, but later we witnessed some cooling down in some of these prices, which brought a bit of respite. Other sectors on a macro level, such as the falling retail sales, consumer confidence at 70-year low, and the ongoing geopolitical situation are matters of concern. Global growth is projected to slow down from an estimated 6.1% in 2021 to 3.6% in 2022, as well as 2023. Despite these disruptions highlighted before, Century Textiles and Industries witnessed a strong consolidated performance. Our real estate business saw steady sales due to a sustained demand momentum with Birla Niyaara project sales reaching 58% of the launched inven

R. K. Dalmia

Thank you, Mr. Laddha. Good afternoon, ladies, and gentlemen. For the first quarter of financial year 2023, the business performance was better as compared to the first quarter of financial year '22, as regard to production, sales, sales turnover and although invariably high input cost kept margins low. Century Textiles and Industries Limited July 26, 2022 On sales grew by 31% year-on-year to INR 268 crore, while the EBITDA stood at INR 1 crore. In apparel fabrics overall demand was good in domestic and international market. However, the cost remained inflated due to high cotton cost, high cost of power and steel, etc, which has affected the margins. In Bed Linen segment, our main market is U.S., which is going through tough time because of high inflation and consumer confidences at very low level. In addition to it the stocks got piled up due to delayed logistic and high booking in the last year by brands, as a result, the market as a whole is experiencing a low demand and it will tak

J. C. Laddha

Thank you, Mr. Dalmia. Friends, lastly, let me highlight to you on the various environment, social and governance that is ESG initiatives undertaken during the quarter. In our Real Estate division, we completed our submission for obtaining an assessment by GRESB, that is Global Real Estate Sustainability Benchmark which scores and benchmarks ESG data. This will help benchmark and showcase our commitment to the environment internationally. On the social front, during the IPL season, we increased our interactions with our customers through our customer engagement event, titled as Predict and Win. And we also had an event Lose to Win, which is an initiative to improve employee fitness. In the Paper division, we did some interesting work on the ESG front like collection of about 54 metric tons of fallen pine tree leaves called as Perul, which has high chances of causing wildfire during the summer season, which would be used as a fuel in our boilers. In Haldwani, we built 12 catchment area

Biplab Debbarma

The first question is from the line of Biplab Debbarma from Antique Stock Broking. Please go ahead. So, sir, my first question is on the real estate. So almost all of the projects in Gurgaon, Kalyan substantially sold out, but we didn't see any launch of new phases in these two projects. So what's the company's thought process here? Are you planning to launch new Century Textiles and Industries Limited July 26, 2022

Snehal Shah

phases here and in this, or you are planning in second half of this year, just trying to understand how you're going to go about it? Hi, Biplab. Thank you for your question. Yes, so we were actually planning to launch new phase in Kalyan and a new phase in NCR for Birla Navya. What happened was that because of the delay in approvals, etc, that got delayed. However, we did launch Kalyan. Now we have launched, the last phase of Kalyan, which is in the pre-launch stage right now, market warming is happening. In Navya, we are still awaiting the RERA clearance, in NCR it takes huge amount of time. So, we are quite confident that when it gets launched, we'll do very well. We got part RERA for a small portion, the other portion we're expecting the RERA clearance to come any moment now. As soon as we get this, we will be launching that phase fully. So, I'm pretty confident that this quarter we will be launching the Navya phase and Kalyan also we will be showing some traction because of the lau