Century Textiles and Industries has reported a net loss of ₹36 crore in the June quarter against a profit of ₹69 crore logged in the same period last year as the demand was severely impacted by Covid pandemic.
Net sales were down 54 per cent at ₹ 394 crore (₹856 crore).
Despite the Covid-19 situation, the pulp and paper division of the company clocked a capacity utilisation of 57 per cent in June quarter.
The textile division forayed into making masks under Birla-Care brand, which has received orders for over 1 million pieces.
JC Laddha, Managing Director, Century Textiles and Industries, said as the company recoup from the impact of pandemic, the focus is on digitalisation and customer connect during the trying times.
The company has also capitalised on the business opportunities opened up by the pandemic by venturing into mask making and the board segment in pulp and paper business, he said.
Sales volume of pulp and paper was down at 54,725 tonnes against 63,495 tonnes in same period last year.
The nationwide lockdown in the first quarter of FY21 severely impacted the real estate sector in general with unavailability of migrant workforce, liquidity crisis and slowdown in absorption. Construction restarted at our project sites in May, post the Covid-induced lockdown.
The textile division started operations in the first week of May. Capacity utilisation of 50 per cent was achieved which was to fulfil US export orders.
The company expects a revival in demand across business from second half of this fiscal. The medium term outlook for Indian paper industry appears to be weak. However, over the long-term, the demand for tissue is expected to increase while packaging board products may remain in high demand from the pharma and FMCG sectors.