Cosmo Films, a global leader in films for packaging, labeling, lamination, and synthetic paper and an emerging player in specialty chemicals and polymers, declared its financial results for the quarter ended June 2021.
During Q1FY22, EBITDA has increased by 53% on account of higher specialty sales (20% growth), better operating margins, and uptick performance by subsidiaries. This, together with a marginal reduction in the overall tax rate, led to an increase of 85% in PAT. The increase in EPS was still higher due to the impact of the buyback of shares in December 2020.
Expected capacity expansion (Specialized Polyester line), focus towards growing specialty sales, diversification into specialty chemicals, FMCG business, and pet care would drive further growth in coming years.
Credit rating agency CRISIL has upgraded the 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 solid financial profile and continuous growth of Cosmo Films in specialty films.
Commenting on the company's performance Pankaj Poddar, chief executive officer, Cosmo Films, 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, and Cosmo continuously reduces its carbon footprint while helping brands with 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 that assures 99.9% protection against viruses and bacteria on clothes. The company's R&D has completed the development of 20+ textile chemical products, each with specific USPs. Many textile chemicals products have already received prestigious GOTS approval and customer approvals, while the commercial production will start in Q2FY22. We are also ready for the pilot launch of pet care in Q2FY22 under the brand name 'Zigly', which will be a unique value proposition with an omni-channel presence for pet parents."