Century Pulp & Paper operates at 92 percent capacity utilization during Q3

Century Pulp & Paper operates at 92 percent capacity utilization during Q3 

New Delhi | 2nd February 2021 | The Pulp and Paper Times:

Paper manufacturing giant, Century Pulp & Paper (CPP) has shown a resilient performance amidst challenging market conditions on account of the pandemic-induced shutdowns. Despite the challenging business environment, CPP operated at 92% capacity in Q3.

During the quarter, sales volumes were marginally higher than Q2 at 96,283 MT’s. The capacity utilization for the quarter was 92%. 

Commenting on the Q3 results, Mr JC laddha MD, Century Textiles and Industries Limited (CTIL) said, “The quarter marked a change in business sentiment as unlock measures gathered steam and the rollout of a vaccine appeared imminent. Our performance across businesses witnessed a positive momentum. CTIL continues to nurture customer relationships while focussing on digitization. The further opening up of restrictions will have a positive impact on our business in the coming months while we continue to focus on the safety of our employees."

He further said that order flow from Pharma sector in the Board segment improved in comparison to the previous quarter as OPD services in the country re-opened post Covid-19 unlock guidelines. However, major consumption centres of all the three segments continued to remain partially shut thus leading to low demand in all the three segments - paper, tissue and boards. 

There was some relief in the Tissues segment with partial opening up of the tissue consumption segments under Unlock 5 guidelines.

Post the unlock phases and with the vaccine on the anvil, order flows are expected to slightly improve given the gradual reopening of major consumptions segments. The partial opening of education centres as well as the announcement of the CBSE Board examinations is likely to lead to some recovery of demand in this segment. The gradual opening of cinema halls, malls, theatre multiplexes, entertainment parks outside containment zones will help revive demand. The uptick in ecommerce transactions will also aid the growth for the packaging industry. Overall, considering the present domestic and global economic scenario, the short to medium-term outlook for the Indian paper industry is likely to be decent.

CTIL reports INR 53 Crore PAT (Profit after tax) during Q3.

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