The company shows a strong 23% increase in net revenue over previous year.
Cosmo First (Formerly Cosmo Films) has achieved strong Q1, FY23 results amidst tougher external environment with 23% increase in net revenue from Rs.688 cr. to Rs.843 cr. Comparing EBITDA between Q1 FY23 and Q1 FY22, the company has shown an increase of 6% from previous year figures (Rs.142 cr. to Rs.150 cr.). Both PBT and PAT have shown increase of 6% and 7% respectively.
Announcing the financial results for the quarter ending June 2022, Mr. Pankaj Poddar, Group CEO, Cosmo First said, “During the quarter, the flexible packaging industry experienced pressure on margins due to 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,” he added.
Pankaj expects the demand supply balance to get restored over the next few quarters. Their speciality films portfolio, which accounts for more than 65% of the sales, is growing quarter on quarter.
“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 threefold increase in revenue over last year,” informed Pankaj.
The Company plans its future growth to 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 their pet care vertical. The company had announced bonus shares issue in May 2022 which also got duly completed.