Cosmo First declares financial results

During the quarter, the flexible packaging industry experienced pressure on margins due to the 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 the US dollar, the company reported.  

 

Comso First’s sustained focus on speciality films in the last 2-3 years and ongoing improvement of internal efficiencies has helped it achieve higher EBITDA despite the margin pressure.   

 

Its annualized ROCE and ROE stands at 27 percent and 36 percent respectively with TTM EPS increasing to 150 INR (1.89 USD).   

 

The company’s speciality films portfolio which accounts for more than 65 percent of its sales and is growing quarter on quarter.  

 

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.  

 

Pankaj Poddar, group CEO, Cosmo First, 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 centers. We target to have 15 experience centers 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.’