Cosmo Films Q3 PAT up by 36%

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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%).

In Rs. Crore Q3 FY19 Q3 FY18
Net Revenue 557.7 458.4
EBITDA 36.3 37.3
PAT 13.3 9.8
EPS (in Rs.) 6.9 5.1

 

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 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%).

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 Dec 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.

Tax Expense for the quarter ended 31 December’18 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 Ltd. 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 stabilised 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 company optimize cost and help improve capacity utilization. The thermal film for sales in USA shall henceforth be entirely supplied from India.”

About Cosmo Films Limited

Established in 1981, Cosmo Films is a global leader in speciality films for packaging, lamination and labeling applications. With engineering of innovative products and sustainability solutions, Cosmo partners with world’s leading F&B brands, packaging & printing converters to enhance their consumer experience.

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