Containers & Packaging firm Cosmo First announced Q1FY23 Result : Strong Q1, FY23 results from Cosmo amidst tougher external environment During the quarter, the flexible packaging industry experienced pressure on margins due to the commissioning of several new production lines within a short span of 4-5 months. The bunching of capacity expansions caused temporary imbalance in the demand supply scenario. Margins were also under pressure in the overseas subsidiaries due to increased raw material costs and weakening of foreign currencies against US dollar. Our sustained focus on speciality films in the last 2-3 years and ongoing improvement of internal efficiencies helped achieving higher EBITDA despite the margin pressure. Our annualized ROCE and ROE stands at 27% and 36% respectively with TTM EPS increasing to Rs. 150. The demand supply balance should get restored over the next few quarters with strong organic growth in domestic demand and geo-political normalcy returning in Europe. In the meantime, our speciality films portfolio which accounts for more than 65% of our sales and is growing quarter on quarter would enable us to hold strong. Commenting on Company’s performance Mr. Pankaj Poddar, Group CEO, Cosmo First Ltd. said “In packaging business, we expect growth journey to continue with speciality films. Our continued thrust on innovating films with lower carbon footprints would further strengthen our leadership position in specialty films. During the quarter, our Specialty Chemicals business has posted a threefold increase in revenue over last year. Our Petcare vertical, Zigly has now four experience centres. We target to have 15 experience centres by FY23. In coming years, the Company’s growth will be driven by expanded portfolio of speciality films, commissioning of Specialized Polyester line and capacity expansion of CPP and BOPP films as well as innovative multi products offering in specialty chemicals and growth in omni channel ecosystem for Pets Care.” Result PDF
Cosmo Films announced Q4FY22 results: The Q4FY22 EBITDA has increased by 31% on the back of higher speciality sales, better operating margins and uptick performance by subsidiaries. Enhanced EBITDA together with lower effective tax rate led to increase in PAT by 45%. FY22 ROCE and ROE stands at 29% and 39% respectively with increase in EPS to Rs.222 per share. Net debt at Rs.303 crores is less than 0.5 times to EBITDA. Commenting on Company’s performance Mr. Pankaj Poddar, Group CEO, Cosmo Films Ltd. said “All through our journey, we have prided ourselves in our ability to provide industry first niche solutions in the areas of packaging, lamination, industrial and labelling applications. We have made inspired diversifications into Speciality Chemicals, Consumer care and D2C retail, aiming to be a pioneer in previously fragmented industries. In coming years, the Company’s growth will be driven by Films Division (Specialized Polyester line, largest CPP and BOPP line) as well as growth into consumer care, specialty chemicals & Pet care business." Result PDF