Cosmo First reports 51.67% dip in net profit in Q4 of FY2024

INDIA – Indian multinational corporation Cosmo First Limited has reported a net profit decline of 51.67% to Rs 15.38 crore (US$1.84m) in the quarter ended March 2024, compared to Rs 31.82 crore (US$3.81m) in the previous quarter ended March 2023.

Sales declined 10.31% to Rs 641.31 crore (US$76.80m) in the quarter, compared to Rs 715.05 crore (US$85.63m) in the previous quarter ended March 2023.

EBIDTA in Q4 improved by 10.5 % to Rs 67 crore (US$8.02m), compared to Rs 56 crore (US$6.71m) in Q3 of 2023.

Higher specialty sales and improved domestic BOPP film margins (effective March 2024) made the improvement possible.

The industry margins for BOPET film (about 8% of the Company’s FY24 sales) continued to remain negative. The Company is focused on profitable specialty films and shrink films to achieve EBITDA breakeven.

During the quarter, the Specialty Chemical subsidiary’s EBITDA also improved due to enhanced realization of chemical coatings. Cosmo Specialty Chemical should deliver double-digit EBITDA and 20%+ ROCE in FY25.

During the quarter, CRISIL reaffirmed the Company’s credit rating as AA—with a stable outlook.

Commenting on the Company’s performance, Mr. Pankaj Poddar, Group CEO of Cosmo First Ltd, said, “The Company’s focus remains on its specialty business. It shall be further strengthened with the launch of the high-value-added sun control film Cosmo Sunshield in FY25. In Zigly, we are focussed on the same-store sales growth.”

For the full year, net profit declined 74.51% to Rs 62.19 crore (US$7.44m) in the year ended March 2024 as against Rs 243.99 crore (US$29.22m) during the previous year ended March 2023.

Sales declined 15.59% to Rs 2587.34 crore (US$309.84m) in the year ending March 2024 as against Rs 3065.29 crore (US$367.07m) during the previous year ending March 2023.

Looking ahead, the Q1, FY25 outlook for BOPP margins remains steady at the March 2024-month level. The Company is also anticipating improved sales of specialty BOPP films and a reduction in costs, which are positive indicators for future growth.

Last month, Cosmo Synthetic Paper (CSP), a pioneering division of Cosmo Films, launched eight new brands designed to cater to various print media needs.

The company stated that these brands are crafted to meet the diverse requirements of the printing industry and deliver innovative solutions.

CSP serves as a durable alternative to traditional paper in fields where longevity is crucial, such as commercial printing, tags and labels, retail and packaging, identification and credentials, and outdoor applications.

Mr. Kulbhushan Malik, Global Business Head at Cosmo Films, commented on the expansion, saying, “The latest range under Cosmo Synthetic Paper is designed to offer numerous solutions for various end-users in the printing industry and ensure compatibility with diverse print media.”

He added, “Our synthetic paper is becoming popular among businesses seeking innovative, cost-effective, and sustainable paper-based solutions.

“With the segmentation and branding of our products, we are confident that our offerings will help our customers make informed choices and expand our client base.”

For all the latest packaging and printing industry news from Africa and the World, subscribe to our NEWSLETTER, follow us on LinkedIn and subscribe to our YouTube channel.