P1 plus for Century Enka

The P1 plus rating assigned to the company's commercial paper programme has been reaffirmed for an increased quantum of Rs. 30 crores. The rating reaffirmation takes into account the improvement in Cenka's financial position, characterised by improved capital structure and interest coverage during 1999- 2000. The ratings also factor in the company's association with Accordis, diversified operations, strong market position in nylon tyre cord fabric, good control on working capital and comfortable liquidity position. These strengths are partly offset by the competitive and cyclical nature of the polyester and NTCF industries and low profitability of the polyester yarn business.

Cenka, jointly promoted by the B. K. Birla group and Akzo Nobel (now with Accordis on restructuring of Akzo Nobel fibre business), is engaged in the manufacture of nylon tyre cord fabric (NTCF) and synthetic (nylon and polyester) textile and industrial yarns. For the half year ended September 30, 2000, the company has recorded a net profit of Rs. 16.23 crores on a net sales of Rs. 370.2 crores.

Corporate Bureau

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Section  : Business
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