Cosmo First, a manufacturer of specialty films used in packaging, label, lamination, and industrial applications, has declared its financial results for the quarter ended June 2023.
Net revenue for Q1 of FY 24 was Rs 658 crore compared to Rs 715 crore in Q4 of FY 23. Profit after tax was Rs 14 crore Q1 of FY 24 over Rs 32 crore in Q4 of FY 23.
The results for the quarter would have been better by Rs 20 crore but for the non-repetitive inventory loss arising from the sharp drop in prices of raw material towards the quarter end, the company said.
During the quarter, demand for BOPP 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 the supply-demand gap to bridge. Margins are therefore likely to remain under pressure with little downside risk, the company said.
The export markets showed signs of improvement with better specialty sales. Cosmo, with over two third of its revenue coming from BOPP speciality films, said it could withstand the margin pressure better than the industry. “We continue to build our specialty films portfolio by adding specialty polyester films including shrink label and sun shield films which would further strengthen our overall margins and also the ability to withstand margin pressures, if any in the future.”
The company’s Petcare vertical (Zigly) continues to grow rapidly and clocked monthly revenue (GMV) with a run rate revenue of Rs 3 crore 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.
Commenting on performance 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 & growing new businesses.”
Founded in 1981 by Ashok Jaipuria, Cosmo First has a presence across more than 100 countries around the globe. Cosmo First is a global name in specialty films and an emerging player in specialty chemicals (masterbatches, adhesive and coating chemicals).
