Century Textiles’ realty arm secures 5 acre land in Gurugram; stock jumps 8%

Birla Estates, a wholly owned subsidiary of Century Textiles and Industries, acquired a 5-acre plot of land in Gurugram on July 15. The land has potential for developing approximately 10 lakh square feet and is projected to yield revenues exceeding ₹1,400 crore, Aditya Birla Group company says in an exchange filing.

Following this development, shares of the company surged over 8% to reach ₹2,270.40 apiece on the BSE today. The scrip opened higher at ₹2,157.90 against the previous closing price of ₹2,100.70. The textile major’s m-cap was at ₹24,436.78 crore. In the past 6 months, year-to-date (YTD) period, and 1 year, the stock has risen by 52.58%, 70.94%, and 129.11%, respectively.

“Situated on Southern Peripheral Road (SPR) Road in Sector 71, this prime location offers exceptional connectivity to Delhi and other parts of Gurugram via the Dwarka Expressway, Sohna Road, and Golf Course Extension Road along with proximity to top educational institutions, hospitals, as well as F&B, retail, and commercial centres,” the textile company adds.

K. T. Jithendran, MD & CEO at Birla Estates said, "Gurugram has been a pivotal market for us from the outset. The real estate potential in this micro-market is immense and reinforces our strong focus in the Delhi-NCR region. With this acquisition, we aim to cater to homebuyers seeking exclusivity and distinctive living experiences. At Birla Estates, our commitment transcends luxury; our ethos is to embrace a vision of residences that embody a legacy of dedication and excellence."

Century Textiles & Industries operates in the manufacturing sectors of textiles, cement, pulp and paper, and real estate. The textile company reported a 4.40% decrease in consolidated net profit to ₹160.28 crore in Q4 FY24, down from ₹167.66 crore in Q4 FY23. Revenue from the Pulp & Paper business also declined by 5.58% to ₹859.07 crore in Q4 FY24 compared to ₹909.85 crore in Q4 FY23.

In the textiles segment, revenue remained unchanged year-on-year at ₹12.49 crore in Q4 FY24. Meanwhile, in the Real Estate business, revenue surged to ₹92.16 crore in Q4 FY24, higher than ₹36.12 crore in Q4 FY23. The booking value stood at ₹2,881 crore in Q4 FY24, while it sold 0.58 million square feet.