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Century Enka Ltd.

BSE: 500280 Sector: Industrials
NSE: CENTENKA ISIN Code: INE485A01015
BSE 00:00 | 25 Sep 170.65 5.35
(3.24%)
OPEN

168.05

HIGH

171.35

LOW

165.65

NSE 00:00 | 25 Sep 170.75 6.15
(3.74%)
OPEN

169.80

HIGH

171.90

LOW

164.40

OPEN 168.05
PREVIOUS CLOSE 165.30
VOLUME 875
52-Week high 218.50
52-Week low 100.00
P/E 7.15
Mkt Cap.(Rs cr) 373
Buy Price 168.00
Buy Qty 10.00
Sell Price 171.50
Sell Qty 20.00
OPEN 168.05
CLOSE 165.30
VOLUME 875
52-Week high 218.50
52-Week low 100.00
P/E 7.15
Mkt Cap.(Rs cr) 373
Buy Price 168.00
Buy Qty 10.00
Sell Price 171.50
Sell Qty 20.00

Century Enka Ltd. (CENTENKA) - Chairman Speech

Company chairman speech

Your Company given its legacy of performance and strong balance sheet is well poisedto overcome the challenges posed by the pandemic.

Dear Shareholders

The world has witnessed unprecedented disruption over the last several months onaccount of Covid-19 and the associated lockdowns. Nations society corporations andindividuals are all being tested in ways that one could not have imagined at the turn ofthis decade.

The short-term impact of the pandemic is apparent by way of a collapse in economicactivity with the global economy estimated to contract by 4.9% in CY 2020 as per therecent forecast of the International Monetary Fund (IMF). The Indian economy is alsotipped to contract in 2020-21 on account of the Covid-induced economic standstill in Apriland May

Given the unparalleled nature of this crisis governments across the economies haveresponded firmly and swiftly to cushion the blow. Stimulus aggregating to more than 1/10thof the global GDP has been infused into the global system. The Government of India hasalso announced a series of bold and structural reforms as an antidote to the Covid-inducedrecession.

However the magnitude and impact of the long-term scars inflicted by the pandemic areyet to be ascertained. Though it is evident now that this pandemic will accelerate a fewshifts that have already been at play— digitisation and de-globalisation.

As the world recalibrates to a new normal businesses that are underpinned on soundfundamentals and robust leadership will emerge stronger.

Your Company given its legacy of performance and strong balance sheet is well poisedto overcome the challenges posed by the pandemic.

Financial Year 2019-20 Performance

In 2019-20 your Company like most other businesses had to navigate a challengingeconomic landscape.

This was on account of the economic slowdown that was further exacerbated by theearly-stage impact of Covid-19.

The performance of your Company was impacted due to lower sales volume of Nylon TyreCord Fabric (NTCF) and pressure on Nylon Filament Yarn (NFY) margins. The slump inautomobile industry led to de-growth in the tyre industry which in turn resulted in lowdemand for NTCF a reinforcement material in tyre production. In case of NFY the salesvolume for the year was higher compared to last year but margins were under pressure dueto high dumping of cheap material from China as well as other Asian countries. Volatilityin prices of key raw materials like Nylon chips and Caprolactum also impacted margins forboth the products.

Your Company is cognizant of the challenging business environment and has developed aclear strategic roadmap to offset the impact of the current economic disruption. Thisentails conserving cash optimising the cost of production reducing the impact ofvolatility in raw material prices controlling fixed costs and widening the pool of NTCFcustomers. I am pleased to report that your Company is making considerable progress on allthese fronts. This is largely due to the tremendous resilience and agility demonstrated bythe leadership team with the active support of all employees.

Going forward your Company expects NTCF demand to pick up on the back of a goodmonsoon which in turn should lead to the revival of rural demand and increased fundallocation to the infrastructure sector. The revival of NFY demand could take longer dueto non-availability of labour and the lingering effect of the lockdown on consumerdemand.

The pandemic is also a reminder of our responsibility towards the community at large.Your Company continues to engage deeply with local communities to make a meaningfuldifference in their lives. Our CSR efforts have been focused in the areas of educationrural development health and women empowerment. For several decades this communityspirit has been embedded in the DNA of your Company This will never change.

The goodwill of all stakeholders resilience and agility of our employees and thestrength of the balance sheet will ensure that your Company emerges stronger in the post-Covid world.

I would like to thank all stakeholders for their continued faith and support and extendmy appreciation to all the employees for their unflinching commitment in these challengingtimes.

Best Wishes

Rajashree Birla

.