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Century Textiles Optimistic About Paper Segment Demand As Supply Disruptions Ease


wealth-desk
wealth-desk

Despite the second wave impacting business activities, Century Textiles & Industries reported a net income of Rs 54 crore and a revenue of Rs 998 crore on a standalone basis in the first quarter of the current financial year. Another headwind for the sector has been the rising input costs due to supply issues.

Speaking to CNBC-TV18, Snehal Shah, CFO at Century Textile and Industries said. that the company is optimistic about paper segment demand picking up as supply disruptions have now started to ease.

The tissue segment is showing good traction since the COVID times and the packaging products side of the business is also now back in full swing. The company has now doubled its capacity in the tissue segment.

There are still headwinds in the form of input prices which have not cooled off yet and thus though demand is high, margins will be under pressure in the short term.

The prices of the final products are more or less at lifetime highs.

“I think over a period of time, we should be able to generate much more margins going forward once everything has a level,” said Shah.

For the full interview, watch the accompanying video

(Edited by : Abhishek Jha)



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