Century Enka drops after poor Q2 results

Century Enka lost 2.63% to Rs 164.70 at 14:07 IST on BSE after net profit fell 41.9% to Rs 12.53 crore on 20.3% decline in net sales to Rs 310.60 crore in Q2 September 2014 over Q2 September 2013.

The Q2 result was announced after market hours on Friday, 31 October 2014.

Meanwhile, the S&P BSE Sensex was down 34.15 points or 0.12% at 27,831.68.

On BSE, so far 11,000 shares were traded in the counter as against average daily volume of 16,665 shares in the past one quarter.

The stock hit a high of Rs 171.95 and a low of Rs 163.75 so far during the day. The stock had hit 52-week low of Rs 125.95 on 1 November 2013. The stock had hit a 52-week high of Rs 202.75 on 24 July 2014.

The stock had underperformed the market over the past one month till 31 October 2014, surging 3.9% compared with Sensex's 4.64% rise. The scrip had also underperformed the market in past one quarter, sliding 1.6% as against Sensex's 7.61% rise.

The small-cap company has equity capital of Rs 21.85 crore. Face value per share is Rs 10.

Century Enka said that the continuous process polymer lines at Bharuch producing polyester yarn were suspended in November 2013. Part of these lines were successfully converted into non-continuous and put into operation to manufacture nylon textile yarn. Some more lines are under active consideration for conversion. In view of the modification referred above, the operation of the remaining polyester lines would continue to remain unviable, the company said. Century Enka has therefore decided to continue suspension of remaining continuous process polymer lines to protect overall profitability of the company for the time being, it added.

Century Enka manufactures polyester filament yarn, nylon filament yarn, polyester partially oriented yarn, polyester and nylon chips of industrial and fabric grade and nylon industrial yarn and nylon tyre cord fabrics.

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