Century Enka Limited has informed the Exchange about Transcript
CENTENKA · price
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Century Enka reported Q4 FY25 revenue of Rs. 444 crores (down 5% YoY) with EBITDA crashing 74% YoY to Rs. 9 crores (margin of just 1.98%), and PAT down 67% YoY to Rs. 7 crores. The sharp margin compression was driven by a steep fall in Caprolactam prices (from $1,688/ton in March 2024 to $1,278/ton in April 2025, a ~$410 drop), which caused significant inventory losses, along with weak demand in the truck/bus tyre segment and Chinese dumping. For the full year FY25, revenue grew 15% to Rs. 2,002 crores with EBITDA up 39% to Rs. 115 crores and PAT up 55% to Rs. 66 crores. A fire at the Bharuch plant in late February led to Rs. 8 crores in repair costs, partly offset by a Rs. 6 crore insurance claim booked as other income; the plant is expected to be fully operational by end of June. Management guided for 5-10% volume growth in FY26 and steady-state EBITDA margins of 6-8% once raw material prices stabilize, with Polyester Tyre Cord Fabric (PTCF) commercial supplies targeted from Q4 FY26.
Weak Q4 numbers caused by one-off inventory markdowns and fire-related costs, but the full-year FY25 performance shows healthy growth. The sharp Caprolactam price fall appears largely behind them, and if prices stabilize, margins should recover meaningfully toward the guided 6-8% range. Near-term stock sentiment may be cautious given the Q4 miss, but FY26 outlook hinges on Caprolactam price stability, PTCF commercialization, and absence of further Chinese dumping.