Century Enka Limited — PPTs, 07-05-2025: Investor Presentation

1. Financial Highlights:

Century Enka reported revenue of INR 200.17 Cr for the year, up 14.8% YoY. EBITDA rose 38.5% to INR 11.47 Cr with margin improvement of 98 bps to 5.73%. Net profit increased 55.4% to INR 6.65 Cr, and PAT margin expanded to 3.32%. Q4 revenue declined 5.3% YoY to INR 44.40 Cr, with EBITDA margin contracting sharply to 1.98% due to subdued demand and margin pressure. Basic EPS stood at INR 30.42 for FY25 and INR 3.09 for Q4. The balance sheet remains strong with net worth of INR 141.76 Cr and net surplus cash of INR 32.56 Cr.

2. Strategic Initiatives & Growth Drivers:

Focus is on growing the share of value-added, niche nylon yarn products to enhance margins. Polyester Tyre Cord Fabric (PTCF) is in customer approval stage, with commercial supplies expected from Q4 FY26, representing a key product expansion. Bharuch plant is being revamped after a fire incident, aiming for full operations by June-end.

3. Business Developments:

FY25 NTCF volumes improved overall, but Q4 suffered from weak Truck & Bus demand and rising imports impacting domestic sales. The PTCF launch pipeline opens a new growth segment. Cost containment efforts continue amid volatile raw material and power prices, especially fluctuating caprolactam costs.

4. Market Position & Competitive Advantage:

Century Enka remains a leading producer of nylon filament yarn and tyre cord fabric with over 25% domestic market share. The Enkalon brand is recognized for quality and customization, supporting reinforced yarn leadership. Facilities in Pune and Bharuch provide scale and operational efficiency.

5. Investor Implications:

Strong FY25 results and emphasis on value-added products offer positive growth potential. Near-term softness and margin pressures highlight execution risks tied to imports and raw material volatility. PTCF commercialisation and plant restoration provide medium-term growth visibility, underpinning an overall resilient outlook.