Friday, April 12, 2024

Cosmo Films Q3FY19 PAT increased by 36% and net revenue by 22%

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Cosmo Films Limited has declared its financial results for the quarter ended December 2018. The company has grown both in terms of net revenue and EPS during the quarter. FY19 net revenue increased by 22% on YOY basis due to increase in sales volume (9%) and pass through of increase in raw material prices (13%).

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The domestic film margins continued to decline until November. Besides there was an adverse impact from one-time inventory revaluation loss of Rs.9 crores due to sudden sharp fall in raw material prices towards December end. The results were also impacted by hedging cost/forex losses of Rs.4.5 crores (vs. Rs.3.4 crores gain in corresponding quarter).

Despite the adverse factors, the company maintained its EBITDA from increase in export margins, tax incentives on new investment and one-time gain of Rs 8 crores from sale of land and building in US subsidiary following the de-commissioning of plant.

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Tax expense for the quarter ended 31 December 2018 is net of deferred tax credit of Rs 3.7 crores with respect to temporary differences pursuant to filing of Income Tax Return for AY 2018-19.

Commenting on the financial performance of the company, Pankaj Poddar, CEO, Cosmo Films, said, “The demand and supply situation has started to get better with demand growth outpacing supply and the price recovery may start happening in the foreseeable future. The company has also stabilized its sales from additional capacity and therefore can better focus on improving prices and sales mix.

The US thermal film plant has been relocated to India. Shifting to India shall help the company optimize cost and help improve capacity utilization. The thermal film for sales in the USA shall henceforth be entirely supplied from India.”

The editorial team of The Packman who handle all the press releases with Sunil Jain working as the desk editor.

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