Shares of Aditya Birla Group company Century Enka crashed nearly 11 percent to close at Rs 531 apiece on February 27, after the company informed through an exchange filing about production disruption following a fire at its nylon filament yarn (NFY) spinning plant in Gujarat's Bharuch district.
No injuries or casualties were reported in the incident, said the company, adding that the fire was contained at the time of communication to the exchange, but it resulted in a disruption of production.
"There is adequate insurance coverage for said plant and intimation to Insurance Company is being made. This is not likely to have material impact on the Company’s profitability," the exchange filing said.
Century Enka is taking adequate steps to restore the operations at the plant, and is also investigating the cause of the fire and assessing the loss incurred because of the incident.
The affected unit in Gujarat is one of the two manufacturing facilities of the company which cumulatively have a capacity of around 92,000 MTPA. The other manufacturing facility is located in Pune, Maharashtra.
The Century Enka shares are down over 38 percent from the 52-week high of Rs 864 apiece, and nearly 41 percent higher from its 52-week low of Rs 380 apiece.
Earlier this month, the company had announced its results for the third quarter of the current financial year, posting a near three-fold rise in net profit at Rs 13.99 crore, compared to Rs 4.67 crore reported a year ago.
Its revenue from operations surged to Rs 493.40 crore, and EBITDA stood at Rs 27.2 crore while EBITDA margin was reported at 5.51 percent during the reported quarter.
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The company produces Nylon Filament Yarn (NFY) and Nylon Tyre Cord Fabric (NTCF), as well as a wide range of nylon yarns used for varied applications including fish-twines, conveyor belts, sports and active wear, sarees and more.
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