Century Extrusions Ltd

LT-Cash - - - 0.00 Withdrawn Credit Fund-based - LT-Term - - Jan 2025 0.00 Withdrawn Loan Non-fund-based - ST- - - - 0.00 Withdrawn Letter of credit Non-fund-based - ST- - - - 0.00 Withdrawn Credit Exposure Limit Fund-based - LT- - - - 0.00 Withdrawn Vendor financing Non-fund-based - ST- - - - 0.00 Withdrawn Bank Guarantee Annexure-2: Rating history for the last three years Current Ratings Rating History Date(s) Date(s) Name of the and Date(s) and Date(s) and and Sr.

LT-Cash Credit Simple 2 Fund-based - LT-Term Loan Simple 3 Fund-based - LT-Vendor financing Simple 4 Non-fund-based - ST-Bank Guarantee Simple 5 Non-fund-based - ST-Credit Exposure Limit Simple 6 Non-fund-based - ST-Letter of credit Simple Annexure-5: Bank lender details for this company To view the lender wise details of bank facilities please click here Note on complexity levels of the rated instruments: CARE Ratings has classified instruments rated by it on the basis of complexity.

The liquidity position of the company was stressed in the past 12 months characterized by increasing utilization of the fund based working capital limits with maximum utilizations ranging between 90%-98%. Moreover, CEL’s business is working capital intensive in nature as it has to offer 30-40 days credit period to its customer due to intense competition in the industry and also has to maintain 1 to 2 months inventory to execute the bulk orders on a time bound manner. The

Aluminium ingots and billets are the key raw material for CEL. CEL procures these materials at the price prevailing on the date of its dispatch. The aluminium industry is cyclical in nature with prices for the commodity driven by changing demand and supply conditions in the market which also has strong linkages to the global market. This results in risk of price fluctuation on the inventory of raw materials as well as finished goods. The overall working capital intensity of CEL’s

CEL operates on a relatively moderate scale of operations in a fragmented and competitive aluminium extrusion industry which is characterized by the presence of numerous players. The entry barrier in the industry is low considering relatively low investments required in fixed assets. Hence, aluminium extrusion players have very limited scope to pass on hike in input costs to its customers. Furthermore, a large portion of demand for aluminium extrusion products comes from the

The total operating income (TOI) of CEL witnessed growth of ~7.29% to Rs.255.53 crore in FY19 primarily driven by increase in average sales realizations. Consequently, PBILDT margin demonstrated improvement from 5.87% in FY18 to 6.48% in FY19. PAT Margin however remained stable at 1.58% in FY19 vis-à-vis 1.56% in FY18 due to higher incidence of tax provisioning. Gross Cash Accruals (excluding subsidy) has improved and remained comfortable at Rs.8.82 crore in

The company has successfully completed capex plan towards modernization of its manufacturing facility in June 2019 against earlier COD of April 2019 thereby resulting in time overrun. The total project cost was Rs.14.05 crore, which was funded through debt of Rs.6.55 crore and the balance through internal accruals. Deriving the benefits therefrom shall however remain a key rating sensitivity. Key Rating Strengths Long Experience of promoters in aluminium industry

Long Experience of promoters in aluminium industry The group was promoted by Late Mr. M.P. Jhunjhunwala, through Century Aluminium Manufacturing Co Ltd. (CAMCO) in 1974, which is engaged in manufacturing of secondary aluminium alloys and supplying to Original Equipment Manufacturers (OEMs). CEL commenced operations in 1991 and is presently headed by Mr. Vikram Jhunjhunwala who has extensive experience of more than two decades in aluminium products business.