Shares of Century Textiles soared 14 percent in trade on June 6 after its arm, Birla Estates signed a pact to enter into a joint venture (JV) with Barmalt India to develop a land parcel for a luxury residential group housing at a marquee location in Gurugram.
The land parcel spans 13.27 acres, with a development scope for around 2.4 million square feet, projecting a revenue potential of around Rs 5,000 crore.
Century Textiles ventured into the real estate sector through its wholly-owned subsidiary Birla Estates in 2016. Birla Estates boasts a diversified portfolio encompassing residential, commercial, and mixed-use properties.
"Located in the upscale micro market of Sector 31 Gurugram, this project boasts of exceptional connectivity to Cyber City, Golf Course Road, and Sohna Road. It’s also conveniently located close to commercial hubs such as City Centre 29, Signature Towers, 32nd Avenue and Crowne Plaza with easy connectivity via NH-48 as well as the metro line. Regarding infrastructure connectivity, the project is strategically located just off NH-48 offering quick and convenient access to the IGI Airport, Delhi & prime CBD areas of Gurugram. This micro market features premium residential developments, reputed schools and hospitals along with 5 star hotels within the immediate vicinity, ensuring a thriving and vibrant community environment," said Birla Estates in a stock exchange filing on June 5.
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At 11.45 am, shares of Century Textiles were trading at Rs 2,079.90 apiece on the NSE. Volumes in the counter also surged as 10 lakh shares changed hands on the exchanges so far, significantly higher than the one-month daily traded average of six lakh shares.
“As we expand our footprint in the Delhi-NCR region, we're pleased to announce the addition of this new project in one of Gurugram’s most promising micro market. This project reflects our commitment to offering modern homebuyers world class living spaces in strategically chosen locations, complemented by exceptional amenities. We are confident this project will set a new benchmark in the Gurugram real estate market," K T Jithendran, MD & CEO of Birla Estates had said.
Century Textiles had recorded a 4.40 percent decline in consolidated net profit for Q4 FY24 to Rs 160.28 crore, down from Rs 167.66 crore in the same quarter a year ago. Additionally, revenue from the pulp and paper business fell 5.58 percent to Rs 859.07 crore in the March quarter of FY24 as compared to Rs 909.85 crore in the year ago period.
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