Cosmo Films, a global leader in films for packaging, labeling, lamination and synthetic paper and an emerging player in specialty chemicals, polymers and pet care has declared its financial results for the quarter ended September 2021.
Q2FY22 EBITDA has increased by 54% on the back of higher specialty sales (20%+ growth), better-operating margins, and uptick performance by subsidiaries. Enhanced EBITDA together with lower finance cost and lower effective tax rate led to increase in PAT by 83%. The increase in EPS was still higher at 96% due to the impact of the buyback of shares in December 2020.
Specialized Polyester line and new BOPP line to be commissioned in Q1FY23 and FY25 respectively, focus towards growing specialty sales, diversification into specialty chemicals & Pet care would drive growth in coming years.
During the quarter, the company had announced the 1st interim dividend of Rs.25 per share (equivalent to the full-year dividend paid in the last financial year), which has been paid in Oct 2021.
Pankaj Poddar, Group CEO, Cosmo Films, said, “During the quarter, the company launched its pet care brand Zigly with the opening of its first Experience Centre in Delhi, the launch of mobile van service in NCR and launch of the e-commerce platform. These omnichannel offerings will provide unique convenience and value propositions to pet parents. The initial response is propitious and the Company plans to significantly expand its footprint both in digital and offline (experience centers, stores and vans) over the coming quarters.
“ The newly announced BOPP line will be the largest line and both BOPET and BOPP lines will allow Company to also expand its specialty sales. The company has ordered several other value-added assets for further growth in specialty sales.
“ The textile chemicals production line is under commissioning, while the company continues to conduct extensive trials of its newly developed products.
“ The company is working on several sustainability projects, which is bringing cost savings as well as making Cosmo a truly sustainable organization.”