Cosmo Films reports 184% increase in quarterly PAT
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 v 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.”