Century Extrusions operating cash flow falls 73% in H1

Century Extrusions Limited reported net cash from operating activities of Rs 2.25 crore for the half year ended 30 September 2026, down 73% from Rs 8.33 crore a year earlier, despite net profit rising to Rs 7.38 crore from Rs 5.12 crore. Trade receivables and inventories together absorbed Rs 49.45 crore of cash.

Why did Century Extrusions’ operating cash flow decline?

Century Extrusions’ operating cash flow declined because working-capital movements outweighed the increase in operating profit before working-capital changes. That measure rose to Rs 20.28 crore in the half year ended 30 September 2026 from Rs 12.81 crore in the corresponding 2025 period, while profit before tax increased to Rs 9.81 crore from Rs 6.71 crore.

Trade and other receivables shifted from a Rs 6.42 crore cash inflow in the prior-year half to a Rs 19.88 crore outflow in the latest period. Inventories consumed Rs 29.57 crore, compared with Rs 9.54 crore a year earlier. Together, these items moved from a net Rs 3.12 crore inflow to a Rs 49.45 crore outflow.

Trade payables and provisions generated Rs 34.63 crore of cash, compared with Rs 0.29 crore in the prior-year period. This partly offset the higher cash requirement for receivables and inventories, leaving cash generated from operations at Rs 5.46 crore, against Rs 8.66 crore. Income tax paid increased to Rs 3.21 crore from Rs 1.65 crore, reducing net operating cash to Rs 2.25 crore.

How did Century Extrusions’ profit differ from cash generation?

Century Extrusions recorded higher profit but lower operating cash generation in the half year ended 30 September 2026. Net profit after tax rose 44% to Rs 7.38 crore from Rs 5.12 crore, while total comprehensive income increased to Rs 7.50 crore from Rs 5.13 crore. Net operating cash, however, decreased by Rs 6.08 crore.

Revenue from operations increased to Rs 308.36 crore from Rs 213.81 crore, and total income rose to Rs 308.80 crore from Rs 213.90 crore. Cost of materials consumed increased to Rs 273.35 crore from Rs 170.27 crore. The income statement also reported a Rs 29.48 crore reduction in inventories of finished goods, work in progress and stock in trade, compared with a Rs 4 lakh reduction a year earlier.

The operating-profit reconciliation included Rs 4.15 crore of depreciation, up from Rs 2.33 crore, and Rs 6.76 crore of interest paid, compared with Rs 4.78 crore. Century Extrusions recorded a Rs 19 lakh reversal of expected credit-loss provision in the latest half, against a Rs 6 lakh provision in the corresponding 2025 period.

What changed in Century Extrusions’ working capital balances?

Century Extrusions reported higher inventory and trade receivable balances at 30 September 2026 than at 31 March 2026. Inventories rose to Rs 97.73 crore from Rs 68.16 crore, while trade receivables increased to Rs 48.24 crore from Rs 35.62 crore. Those balance-sheet changes are consistent with the cash-flow outflows of Rs 29.57 crore for inventories and Rs 19.88 crore for receivables.

Current assets increased to Rs 182.13 crore at 30 September from Rs 133.49 crore at 31 March. Other financial assets rose to Rs 3.59 crore from Rs 18 lakh, while other current assets increased to Rs 25.67 crore from Rs 22.81 crore. Cash and cash equivalents increased to Rs 47 lakh from Rs 28 lakh over the six-month period.

Current liabilities rose to Rs 142.05 crore from Rs 98.30 crore during the same period. Trade payables owed to creditors other than micro and small enterprises increased to Rs 54.55 crore from Rs 26.64 crore, and other current liabilities rose to Rs 12.23 crore from Rs 5.37 crore. The increase in liabilities provides context for the Rs 34.63 crore cash inflow from trade payables and provisions.

How did Century Extrusions fund investment spending?

Century Extrusions used Rs 8.49 crore in investing activities in the half year ended 30 September 2026, compared with Rs 8.64 crore used a year earlier. Purchases of fixed assets were Rs 8.96 crore, slightly above Rs 8.67 crore in the previous half. Interest received was Rs 41 lakh, compared with Rs 3 lakh, and investment-sale proceeds were Rs 6 lakh.

Financing activities generated Rs 6.43 crore, compared with a Rs 2.49 crore use of cash in the prior-year period. Long-term borrowings generated Rs 2.64 crore after a Rs 45 lakh repayment a year earlier, while short-term borrowings generated Rs 10.60 crore against Rs 2.20 crore. Financing interest paid rose to Rs 6.81 crore from Rs 4.24 crore.

At 30 September 2026, current borrowings were Rs 71.20 crore, compared with Rs 61.93 crore at 31 March, and non-current borrowings were Rs 4.17 crore against Rs 21 lakh. Capital work-in-progress was Rs 25.86 crore at 30 September, compared with Rs 18.73 crore at 31 March. The filing does not identify individual projects underlying the fixed-asset purchases.

What did Century Extrusions disclose after the half year?

Century Extrusions said that during the financial year subsequent to the half year ended 30 September 2026, it issued and allotted 3 crore partly paid equity shares through a rights issue. The shares had a face value of Rs 1 each and a premium of Rs 14 each, with an entitlement ratio of three shares for every eight existing shares held on the record date. The announcement does not state the cash received or the proposed use of proceeds.

Century Extrusions manufactures aluminium extruded products and transmission and distribution line hardware. It said segment reporting under Indian Accounting Standard 108 was not applicable because it did not meet the relevant criteria. The company also said adoption of Indian Accounting Standard 115, Revenue from Contracts with Customers, reduced first-half profit by Rs 5.48 lakh; its audit committee and board approved the results on 14 November 2026.

Conclusion

Century Extrusions delivered higher first-half revenue, profit before tax and net profit for the period ended 30 September 2026, but its operating cash inflow declined to Rs 2.25 crore. The difference principally reflected Rs 49.45 crore absorbed by receivables and inventories, partly offset by Rs 34.63 crore generated through trade payables and provisions.

The next disclosed matter to watch is the cash received and intended use of proceeds from the 3 crore partly paid rights shares allotted after the half year. Subsequent financial statements can also show whether inventory, receivables, payables and borrowings change after the company recorded Rs 8.96 crore of fixed-asset purchases in the first half.