Cosmo Films, a company in films for packaging, labelling, lamination and synthetic paper, and an emerging player in specialty chemicals, polymers and pet care, has announced its financial results for the quarter ended December 2021.
Q3FY22 EBITDA has increased by 44% (vs. corresponding quarter) on the back of higher specialty sales, better operating margins and improved performance by subsidiaries. Enhanced EBITDA, together with lower finance cost and lower effective tax rate led to increase in PAT by 65%. Increase in EPS was still higher at 75% due to impact of buyback of shares in December 2020.
The board of directors has declared second interim dividend of Rs 10 per equity share for the FY22. Together with first interim dividend, total dividend for FY22 would add up to Rs 35 per equity share compared to Rs 25 for FY21.
During the quarter, the Company has received sanction under Production linked Incentive (PLI) scheme for production of specialty films for use in electronic products. The incentive under the scheme will be for five years on 100% production of the new plant.
Commenting on company’s performance Pankaj Poddar, group CEO, Cosmo Films, said “In coming years, the company’s growth will be driven by specialised polyester line (commissioning in FY 23) and new BOPP line (commissioning in FY25), continuing focus on specialty sales and diversification into specialty chemicals and pet care business (under Zigly brand). Zigly’s pilot launch has delivered better than the forecast and the company looks forward to rolling out its digital first Omni channel business model.
“Textile chemicals business which started commercial production in Q2 FY22 has taken off well. Within the first three months the company has commercialized 40+ products and has started supplies to 40+ customers. The company continues to conduct extensive trials with the customers and expects to add newer products and customers in the coming months. The company has also published its first report on sustainability and ESG initiatives on its website. The company continues to work on several sustainability projects which shall further create favorable environment impact besides cost optimisation,” added Poddar.