Cosmo First has declared its financial results for the quarter ended June 2023. The company stated that the quarter’s performance would have shown an improvement of Rs. 20 crores if not for an exceptional inventory loss resulting from a significant decline in raw material prices towards the close of the quarter.
During the quarter, the BOPP demand has started picking up and the demand-supply balance should get restored in the coming quarter(s). In the case of BOPET where the supply is far in excess of demand, it will take many more quarters for a supply-demand gap to bridge. Margins are therefore likely to remain under pressure with little downside risk.
The export markets showed signs of improvement with better specialty sales. Cosmo with over two third of its revenue coming from BOPP specialty films could withstand the margin pressure better than the industry. We continue to build our specialty films portfolio by adding specialty polyester films including shrink labels and sun shield films which would further strengthen our overall margins and the ability to withstand margin pressures if any in the future.
The company’s petcare vertical (Zigly) continues to proliferate and clocked monthly revenue (GMV) with a run rate revenue of Rs.3 crores on the back of expanding retail footprints, innovative sales promotion, and increasing online presence. The acquisition of Petsy, an online venture in the Petcare space, is complete and would further accelerate the growth of the Petcare vertical.
The Speciality Chemical subsidiary is set to launch newer adhesives in H2 FY24.
Pankaj Poddar, group CEO, Cosmo First, said “The company is working on multiple growth drivers including specialty BOPET films, sun shield film, rigid packaging, specialty chemicals, petcare, etc. We are optimistic that these initiatives will provide impetus to faster growth of the Company in the coming years. In the short-term, we remain focused on increasing specialty sales and growing new businesses.”
