During Q1FY22, EBITDA has increased by 53% to Rs142cr on account of higher speciality sales (20% growth), better operating margins and uptick performance by subsidiaries. This together with marginal reduction in overall tax rate led to an increase of 85% in PAT at Rs87cr. Increase in EPS was still higher due to impact of buyback of shares in December 2020. Net Revenue increased by 43% to Rs688cr.
Expected capacity expansion (Specialized Polyester line), focus towards growing specialty sales, diversification into specialty chemicals, FMCG business & pet care would drive further growth in coming years, the company said in the release.
Credit rating agency CRISIL has upgraded Company’s long-term credit rating during the quarter to AA- and short-term credit rating to A1+ with a stable outlook. The upgrade in credit rating reflects a strong financial profile as well as continuous growth of Cosmo Films in specialty films.
Commenting on company’s performance Pankaj Poddar, CEO, Cosmo Films Ltd. said “The company is enhancing its specialty films portfolio and has launched multiple innovative products making the product pipeline even stronger. Sustainability is at our core, & Cosmo is continuously reducing its carbon footprint while helping brands on more sustainable packaging.
Cosmo Specialty Chemicals, a subsidiary of Cosmo Films forayed into the Fast Moving Consumer Goods (FMCG) industry with the launch of ‘Fabritizer’, a product which assures a 99.9% protection against viruses and bacteria on clothes. The company’s R&D has successfully completed the development of 20+ textile chemical products, each with specific USPs.
Many of the textile chemicals products have already received prestigious GOTS approval as well as customer approvals while the commercial production will start in Q2FY22.
We are also ready for pilot launch of pet care in Q2FY22 under the brand name “Zigly” which will be a unique value proposition with omni-channel presence for pet parents.”
On Thursday morning trade, stocks hit 52-week high at Rs1475 per piece.
At around 9:25 AM, Cosmo Films was trading at Rs1,457.60 apiece up by Rs109.35 or 8.11% on Sensex.