Cosmo Films reports 184% increase in quarterly PAT

In Rs. Crores	Q2FY20	Q2 FY19
Net Revenue	555.9	531.4
EBITDA	64.5	43.2
PBT	37.7	13.7
PAT	28.7	10.1
EPS (in Rs.)	15.0	5.3

 Cosmo Films Limited, a global leader in films for packaging, labeling & lamination applications and synthetic paper today declared its financial results for the quarter ended Sept, 2019.

Q2 FY20 net revenue increased 5% YOY mainly on account of growth in sales volumes. The company achieved EBITDA of Rs. 64.5 crores during the quarter. Higher speciality sales (up 14%), increased sales volumes, improvement in US operations and better BOPP film margins contributed to an improved EBITDA.

The company has started to upgrade one of its largest BOPP film line into a speciality film line, which is expected to be completed by H1, FY21. This will facilitate further growth of speciality films.

During the period, the company received the CII National Excellence Award 2019 for 5S Implementation at its Waluj plant (the oldest plant). Building on the strong R&D focus, the company has applied for multiple patents in the current year, contributing to a strong pipeline of specialty films. These high value-add speciality films will be commercially launched in the coming months and will generate incremental profits with minimal capital expenditure.

Commenting on the financial performance of the company, Mr. Pankaj Poddar, CEO, Cosmo Films Ltd. said, “We continue with our strategy to focus on high end speciality films sale and recyclable structures. BOPP films margins looks stable at the current level. Better utilization of assets and improvement in US subsidiary further contributed towards improved results.”

Cosmo Films reports more than 50% increase in quarterly EBITDA (YOY)

Cosmo Films Limited, a global leader in films for packaging, labelling & lamination applications and synthetic paper today declared its financial results for the quarter ended March 31, 2019.

In Rs. crores	Q4 FY19	Q4 FY18	FY19	FY18
Net Revenue	549.8	502.0	2,156.5	1,846.5
EBITDA	58.4	38.7	181.4	167.6
PBT	33.5	11.8	71.6	64.0
PAT	27.6	25.1	61.1	64.4
EPS (in Rs.)	14.4	13.1	31.9	33.6

Q4 FY19 net revenue increased by 10% on YOY basis backed by 6% increase in sales volume, pass through of raw material prices and favourable product mix changes. The company achieved its highest ever quarterly EBITDA of Rs 58.4 crores during the quarter. BOPP films margins improved during the quarter due to better demand and supply balance in domestic segment. This together with growth in speciality films sales and continued improvement in operational efficiencies contributed to improved results.

For the full year, higher sales volume(up by 5%), sales growth in specialty and operational improvement at USA subsidiary resulted in higher EBITDA at Rs. 181.4 crores even though the domestic BOPP films margins were subdued in first three quarters. However, PAT in FY 18-19 came out to be marginally lower because there was zero tax incidence in FY 17-18 due to one-time tax adjustment.

Commenting on the financial performance of the company Mr. Pankaj Poddar, CEO, Cosmo Films Ltd. said, “Better demand and supply balance in the domestic segment during the quarter saw BOPP margins going up in the quarter but they still remain below the normalized level. The company is investing on an on-going basis on various research projects; some of these projects have started yielding results while many others are expected to come on stream in the next two years.”