Mumbai, Jan 23: Century Enka Ltd, a BK Birla Group company, is expected to post excellent result for the quarter ended December 31, 2000. The company's board is meeting January 24 and the company may declare 100 per cent rise in net profit to Rs 25 crore, which was Rs 13.71 crore during the corresponding period a year ago, said the analysts closely tracking the performance of the company. Based on this performance the company's profit for the full year shall be Rs 75 crore which works out to an EPS of Rs 25.The BK Birla Group company established 35 years ago is engaged in manufacturing industrial yarn fabrics, polyester filament yarn, nylon filament yarn having total production capacity of one lakh metric tonnes per annum. Due to the sluggish growth of this sector, the company has lost investor interest but it is improving it's performance since the last 2-3 years.
It's turnover is increasing steadily since 1997-98 from Rs 725.27 crore to Rs 756.45 crore in 1998-99 and to Rs 932 crore in 1999-2000. The net profit also rose considerably from Rs 7.80 crore in 1997-98 to Rs 52.01 crore in 1999-2000.
Out of company's small equity of Rs 30 crore, the BK Birla Group holds 17 per cent, financial institutions hold 13 per cent, while the worlds largest manmade fibre major Accordis AG holds 36.50 per cent. The rest is being held by the Indian public. Major part of the equity consists of bonus shares and the book value of the company is Rs 160, say analysts.
Copyright © 2001 Indian Express Newspapers (Bombay) Ltd.
