Cosmo First Limited (Formerly Cosmo Films Ltd) Consolidated Results Strong Q1, FY23 results from Cosmo amidst tougher external environment
|
In Rs.
Crores |
Q1 FY23 |
Q1 FY22 |
% Increase |
|
Net Revenue |
843 |
688 |
23% |
|
EBITDA |
150 |
142 |
6% |
|
PBT |
123 |
116 |
6% |
|
PAT |
93 |
87 |
7% |
|
EPS (In Rs.) * (not annualized) |
34.6 |
32.4 |
7% |
* Post issue of bonus shares in
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.
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.
Bonus shares issue announced in May 2022 was
completed ahead of time and the trading in bonus shares commenced on June 29,
2022. The bonus issue reflects management’s continued commitment to share the
prosperity with the shareholders.
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 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.”
About Cosmo First Limited
Founded by Mr. Ashok
Jaipuria in 1981, Cosmo First today has presence across 100+ countries around
the globe. Cosmo First is a global leader in specialty films and an
emerging player in specialty chemicals (Masterbatches, Adhesive, Coating &
Textile chemicals) along with digital first Omni channel Pet care business
under the brand name ‘Zigly’.
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