Any current/future new fundraising through debt or equity?

As of the August 10, 2023 earnings call, Century Enka Limited has not indicated any plans for new fundraising through debt or equity. The company’s current net debt stands at around Rs. 52 crores as of the June quarter. There is no approved large CAPEX plan beyond FY25; future CAPEX decisions will depend on economic conditions and board approvals. The management mentioned waiting to see how markets improve before considering additional CAPEX or utilizing cash reserves. No specific mention or guidance on raising funds via equity or new debt was made in the call.

Any current/future capex/capital investment/strategic investment?

Current CAPEX: Rs. 80 crores ongoing, expected to be partly fructified in FY24 and majorly in FY25. New capacities: Increasing total installed capacity from 86,000 to 94,000 tons per annum by end of FY24. Projects underway: - Polyester Tyre Cord Fabric (PTCF) plant commissioning expected in Q4 FY24. - Nylon Filament Yarn (NFY) capacity expansion also completing in Q4 FY24. - Dipping project trial runs started, commission expected by Q2 FY24. - 10.5 MW wind plus solar hybrid power project commissioned in July 2023 to reduce power costs. Beyond FY25: No major CAPEX planned as of now; onl

Future growth expectations in sales/revenue/volumes?

Volume declined by 8% YoY in Q1 FY24 due to subdued replacement demand, global slowdown, and imports from China. Management expects volume to remain similar to last year overall, aiming to achieve volumes equivalent to the previous year. Volumes and demand are expected to improve primarily from Q3 FY24 onwards, driven by better monsoon, festivals, marriages, increased vehicle production, and government infrastructure spend. Incremental revenue from ongoing CAPEX (around Rs. 80 crores) expected to add Rs. 100-125 crores annually starting FY25. New PTCF capacity to contribute incremental revenue

Future growth expectations in earnings/operating earnings/profits/EPS?

Volume improvement expected from Q3 FY24 onwards due to better demand outlook in both NTCF and NFY segments. Full commercial sales from new PTCF capacity anticipated in FY25, with incremental revenue of Rs. 100-125 crores. EBITDA margin target maintained at 8-10% for the company, expected to improve with higher volumes and efficiency gains from the hybrid power plant and dipping project. The solar captive power plant commissioning will contribute about Rs. 15 crores annual savings in power costs starting Q2 FY24. No major CAPEX planned beyond FY25; focus on maintenance and incremental efficien

Century Enka LtdQ1 FY24Textiles & Apparels

Century Enka Ltd Q1 FY24 Earnings Call Analysis

Revenue, margin, capex, fundraise and order book outlook from management commentary.

Price: ₹538P/E: 8.4Market Cap: ₹1.2K CrSector: Textiles & Apparels

Management growth scorecard

Revenue

Category 4

Margin

Category 3

Fundraise

Order

N/A

Capex

Yes

1 of 4 growth signals are positive — mixed outlook.

Full analysis

Revenue guidance

Category 4

Volume declined by 8% YoY in Q1 FY24 due to subdued replacement demand, global slowdown, and imports from China.
Management expects volume to remain similar to last year overall, aiming to achieve volumes equivalent to the previous year.
Volumes and demand are expected to improve primarily from Q3 FY24 onwards, driven by better monsoon, festivals, marriages, increased vehicle production, and government infrastructure spend.
Incremental revenue from ongoing CAPEX (around Rs. 80 crores) expected to add Rs. 100-125 crores annually starting FY25.
New PTCF capacity to contribute incremental revenues and stabilize margins from FY25.
NFY segment expected to benefit from improved garment exports and festive demand in coming quarters.
No major CAPEX planned beyond FY25; further investments contingent on market conditions.

Margin guidance

Category 3

Volume improvement expected from Q3 FY24 onwards due to better demand outlook in both NTCF and NFY segments.
Full commercial sales from new PTCF capacity anticipated in FY25, with incremental revenue of Rs. 100-125 crores.
EBITDA margin target maintained at 8-10% for the company, expected to improve with higher volumes and efficiency gains from the hybrid power plant and dipping project.
The solar captive power plant commissioning will contribute about Rs. 15 crores annual savings in power costs starting Q2 FY24.
No major CAPEX planned beyond FY25; focus on maintenance and incremental efficiency improvements.
PTCF segment has growth potential linked to expansion in passenger vehicle market; it will diversify revenue and reduce reliance on NTCF.
Management expects margin stability or slight improvement with the new PTCF capacity, but not necessarily better than NTCF margins.
Overall, steady earnings growth expected mainly from FY25 with capacity ramp-up and improved demand environment.

See what Century Enka Ltd management said on margin guidance — free account, 30 seconds.

Fundraise plans

As of the August 10, 2023 earnings call, Century Enka Limited has not indicated any plans for new fundraising through debt or equity.
The company’s current net debt stands at around Rs. 52 crores as of the June quarter.
There is no approved large CAPEX plan beyond FY25; future CAPEX decisions will depend on economic conditions and board approvals.
The management mentioned waiting to see how markets improve before considering additional CAPEX or utilizing cash reserves.
No specific mention or guidance on raising funds via equity or new debt was made in the call.

Order book

The transcript does not explicitly mention details regarding the current or expected order book or pending orders for Century Enka Limited. However, relevant points from the discussion include: - The company expects demand improvement from Q3 FY24 onwards, driven by economic conditions and geopolitical factors improving. - New capacities, such as PTCF, are expected to start commercial sales from FY25. - The company's volume for Q1 FY24 was down about 8% year-on-year but they aim to match last year's volumes by year-end. - There is optimism around rural demand and tractor/two-wheeler sales potentially improving demand. - No specific data on pending or confirmed order book values was shared during the call. Thus, while there is an indication of improving demand and upcoming capacity commissioning, no precise order book figures were disclosed.

See what Century Enka Ltd management said on order book — free account, 30 seconds.

Capex plans

Yes

Current CAPEX: Rs. 80 crores ongoing, expected to be partly fructified in FY24 and majorly in FY25.
New capacities: Increasing total installed capacity from 86,000 to 94,000 tons per annum by end of FY24.
Projects underway:
- Polyester Tyre Cord Fabric (PTCF) plant commissioning expected in Q4 FY24.
- Nylon Filament Yarn (NFY) capacity expansion also completing in Q4 FY24.
- Dipping project trial runs started, commission expected by Q2 FY24.
- 10.5 MW wind plus solar hybrid power project commissioned in July 2023 to reduce power costs.
Beyond FY25: No major CAPEX planned as of now; only maintenance or small efficiency CAPEX.
Future CAPEX decisions dependent on market conditions, board approvals, and demand outlook.
Potential for renewable energy expansion particularly at Pune site is being evaluated.

Track Century Enka Ltd — get its next earnings analysis in your feed

How does Century Enka Ltd rank vs peers in Textiles & Apparels?

Pro feature

ThisCentury Enka Ltd

Rev 4Mar 3

See where Century Enka Ltd sits in Textiles & ApparelsSee which companies these are, and every other name in the sector.Open rankings

How does Century Enka Ltd rank in Textiles & Apparels?

Compare Century Enka Ltd against every Textiles & Apparels company (Q1 FY24) on revenue, margins and earnings-call signals.

View Textiles & Apparels leaderboard →

What Century Enka Ltd's management said in earlier quarters

Others in Textiles & Apparels this season

Purple United Sales Ltd (Q1 FY27)
Reported revenue from operations for FY 2025-26: ₹17,063 lakh, a 65% increase from ₹10,313 lakh in FY 2024-25. Key investor presentation takeaways from Purple U
Ambika Cotton Mills Ltd (Q1 FY27)
FY 2025–26 showed renewed growth with revenue increasing by ~11% to ₹780.95 crore. Key concall takeaways from Ambika Cotton Mills Ltd's Q1 FY27 earnings call…
Orbit Exports Ltd (Q1 FY27)
Revenue from Operations for Q1 FY 2026-27: ₹75.15 Crores, up 19.3% YoY (from ₹63.00 Crores in Q1 FY25-26). Key concall takeaways from Orbit Exports Ltd's Q1…
Lux Industries Ltd (Q1 FY27)
290.9 crores, +8.43% YoY . Key concall takeaways from Lux Industries Ltd's Q1 FY27 earnings call — and how it ranks against sector peers.

Compare:vs Page Industries vs K P R Mill Ltd vs Welspun Living

🔎 Who's planning the most growth?

Companies ranked by management's own guidance — revenue, margins, capex and order book, from every earnings call in India.

See rankings →